PARIS (AFX) - Alstom CEO Patrick Kron said he still expects to pay a dividend on the group's full year earnings to March 2007, its first since the full year to 2001, even as the company is likely to pursue acquisitions.
In an interview with French weekly Le Journal des Finances, Kron also said Alstom shares could soon be added to the benchmark CAC-40 index, following its exclusion in 2002, when the company was reeling from acute financial difficulties linked to high debt and quality problems with certain gas turbines.
'We would indeed like to return to the CAC-40, three years after leaving it, and I note that we fit all the criteria in terms of market capitalisation, free float and share liquidity,' Kron said.
A space in the CAC-40 could open if Gaz de France merges with Suez, or if Mittal Steel were to succeed with its takeover bid for Arcelor.
Regarding rumours of a tie-up with state-controlled nuclear group Areva, Kron said the subject was not currently under consideration, since the French government has said it has no plans to sell any part of the company.
He added that Alstom has no intention of splitting its energy and transport businesses as part of any tie-up.
'We have two core businesses, energy and transport, and speculation about getting out of either one are totally unfounded,' Kron said.
Alstom would also welcome a move by Bouygues SA to increase its stake above 21 pct, the level it will hold once it buys the French government's stake, a deal expected to close in the coming days.
'It poses no problem to me if Bouygues raises its stake further,' he said. Bouygues has said it could raise its stake by purchasing Alstom shares on the market, but it will not go above 33 pct, the level that would require a full takeover offer under French bourse regulations. paris@afxnews.com js/cmr COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited