By Suzanna Kerridge, 22 January 2001 12:54
NEWS According to sources quoted by French newspaper Les Echos, Alcatel has abandoned plans for an IPO, preferring to shortlist two buyers - US-based firm Kohlberg Kravis Roberts and a consortium of buy-out companies called CVC and Carlyle Group. Alcatel expects to raise up to E2bn (£1.27bn) or an estimated 45 per cent of projected sales. Serge Tchunak, chairman of Alcatel, said in October an IPO "would be the most natural way" to raise money, but confirmed the company had been approached by a number of investors. The current slowing of telecom shares on the stock market has since caused a strategic rethink. Meanwhile, Alcatel has been chosen by France Telecom to build and support its French UMTS network. Nokia was picked to oversee the British rollout with the help of Alcatel. France Telecom revealed its shortlist of three, including Ericsson, in October last year. However, the Swedish telco was dropped after it revealed details of a contract to supply Germany's Mobilcom - in which France Telecom owns 28.3 per cent - with a E1.3bn (£830m) UMTS network.
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