Breton nominated as new France Telecom chairman -
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Published on: 10/2/2002
Last Visited: 10/2/2002
"Just the fact that they've managed to find somebody is a good thing," said Philippe Lecoq, fund manager at Ofivalmo in Paris."It's someone that has a good image."
But Breton faces an enormous challenge as he balances the demands of bondholders, lender banks, shareholders and the government, which owns a 55.5 percent stake in the firm.
A slide in France Telecom shares to within a hair of their par value of four euros has complicated initial plans for a 15 billion euro rights issue, and the government has indicated that a multibillion state loan may not be a feasible solution.
Investors have been urging a refinancing plan for months to inject capital into France Telecom, which faces a funding gap of around eight billion euros from next June, analysts estimate.