Bull share sale sees foreign cash pour in

The French government has finally relinquished its majority shareholding in Groupe Bull, with a privatisation move that saw the release of 20 million new shares.

The government cut its stake from 37% to 30.5%, reducing the total public sector holding, including France Telecom's share, to below 50% for the first time.

The government's direct shareholding will be reduced to 20% in time, and there are plans to privatise France Telecom at some point this year.

The three main industry partners in Bull - France Telecom, NEC and Motorola - all invested another FF100m (#12.9m) and increased their shareholdings from 17% to 18.7%. Dai Nippon Printing also invested FF100m and increased its share from 3.3% to 5.8%. IBM did not buy any new shares, so its proportional shareholding dropped.

The company said that trading in Bull shares will continue, after a five year absence, 'as soon as possible'.

'This is a landmark,' said Richard Snook, Bull UK's chief executive.

'Control is now in the hands of private investors. France Telecom will be privatised, which will shift ownership again. The increased shareholding of foreign-owned companies will help Bull in Asia, Japan and the US.'

The UK arm, which forms about 10% of the group, is very healthy, said Snook. He expects to repeat last year's success, when UK revenues increased by 27%.