DATE=7/23/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-235911
TITLE= FRENCH DEFENSE DEAL (L-ONLY)
BYLINE=JULIAN NUNDY
DATELINE=PARIS
CONTENT=
VOICED AT:
INTRO: AFTER WEEKS OF UNDISCLOSED NEGOTIATIONS, FRANCE HAS
CREATED THE BIGGEST DEFENSE COMPANY IN EUROPE, BRINGING TOGETHER
THE PRIVATELY-OWNED "MATRA" MISSILE COMPANY AND THE
AIRCRAFT-MAKER "AEROSPATIALE." JULIAN NUNDY REPORTS FROM PARIS.
TEXT: SINCE DECEMBER, FRANCE'S SOCIALIST GOVERNMENT HAS BEEN
TRYING TO BRING TOGETHER FRANCE'S HIGH-TECHNOLOGY ARMS-MAKERS.
THE MOVE IS SEEN AS ESSENTIAL, IF FRANCE IS TO REMAIN COMPETITIVE
AND BE A FULL PARTNER IN EUROPEAN EFFORTS TO COUNTER THE
DOMINATION OF THE UNITED STATES (IN THE ARMS MARKET).
BUT, AMID ALL THE TALK OF POSSIBLE NEW ALLIANCES, THE STRUCTURE
THAT EMERGED LATE WEDNESDAY IS A TOTAL SURPRISE. THE
PRIVATELY-OWNED MATRA AND THE STATE-OWNED AEROSPATIALE SAID THEY
PLAN TO MERGE ALL THEIR AEROSPACE ACTIVITIES.
MATRA IS ONE OF EUROPE'S MAIN MISSILE MAKERS, IN CONJUNCTION WITH
BRITAIN'S AEROSPACE. AEROSPATIALE WAS THE FRENCH PARTNER MAKING
THE FRANCO-BRITISH SUPERSONIC "CONCORDE" AIRLINER, AND IT IS ONE
OF THE MAIN PARTNERS IN THE EUROPEAN "AIRBUS" CONSORTIUM.
WHAT MAKES THE FRENCH DEAL SPECIAL IS THAT IT INVOLVES THE
PRIVATIZATION OF AEROSPATIALE -- ALTHOUGH THE FRENCH GOVERNMENT
SAYS IT WILL KEEP A CONTROLLING SHARE. JEAN-LUC LAGARDERE, THE
PRESIDENT OF MATRA, WILL BE THE OTHER MAIN SHAREHOLDER WITH SOME
30 PERCENT IN THE NEW COMPANY.
MR. LAGARDERE IS ONE OF FRANCE'S MOST POWERFUL BUSINESSMAN. APART
FROM MATRA, HE IS ALSO THE CHIEF EXECUTIVE OF THE HACHETTE
PUBLISHING AND MEDIA GROUP.
//REST OPT//
ACCORDING TO FINANCIAL ANALYSTS, THE NEW COMPANY WILL BE THE
FOURTH LARGEST DEFENSE COMPANY IN THE WORLD, COMING AFTER THE
AMERICAN GIANTS, BOEING, LOCKHEED-MARTIN AND RAYTHEON-HUGHES, AND
JUST AHEAD OF BRITISH AEROSPACE.
AEROSPATIALE, IN A PRECURSOR TO ITS AGREEMENT WITH MATRA, WAS
ALREADY IN THE PROCESS OF MERGING WITH FRANCE'S DASSAULT AIRCRAFT
MANUFACTURER, WHICH MAKES THE MIRAGE AND RAFALE COMBAT JETS AND
FALCON EXECUTIVE PLANES.
FRENCH FINANCE MINISTER DOMINIQUE STRAUSS-KAHN TOLD A PARIS RADIO
STATION THAT THE MERGER OF MATRA AND AEROSPATIALE HAD BEEN
ENCOURAGED BY THE FRENCH GOVERNMENT WITH THE PURPOSE OF
STRENGTHENING THE EUROPEAN ARMS INDUSTRY.
MR. STRAUSS-KAHN SAID THE MOVE IS A DIRECT RESULT OF AN AGREEMENT
LAST DECEMBER BETWEEN BRITAIN, FRANCE AND GERMANY TO STREAMLINE
EUROPE'S DEFENSE INDUSTRY. NOW, THE MINISTER SAID, THE NEW FRENCH
COMPANY WILL BE ABLE TO ENVISION NEW, EUROPE-WIDE, ALLIANCES.
(SIGNED)
NEB/JWN/PCF/JO
23-Jul-98 11:08 AM EDT (1508 UTC)
NNNN
Source: Voice of America
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