The European Commission launched a formal investigation of the €9 billion in financial aid presented to France Telecom by the government of France. The European Commission said it wonders whether the French authorities are providing FT with funding that it could have obtained under normal market conditions. The formal investigation procedure will whether the State has acted like a private investor. The Commission also needs further proof from the French authorities that the return on the invested capital would have been acceptable to a private investor. The larger issue is whether the support measures are compatible with the proper functioning of the internal EU market.http://europa.eu.int
- On 05-December-2002, France Telecom announced a financial restructuring that includes €15 billion in new equity. The French government, which holds a 55% interest in the company, is providing € 9 billion of this amount.. Under the “15+15+15�? plan, France Telecom would also make operational improvements to increase free cash flow by €15 billion to reduce debt, and the company would reschedule €15 billion of debt.
