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French Bull resumes charge
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May 3, 1999: 11:03 a.m. ET
Computer maker up 16%, builds on prior surge; chief talks of impending partner
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LONDON (CNNfn) - Shares of French computer maker Bull extended a previous surge Monday after a French newspaper quoted the company's chief as saying he expects news shortly about the firm's search for a partner or partners to supplant the government as a major shareholder.
Bull shares soared to a year-high 7.90 euros Friday after being suspended limit-up several times amid talk that Bull was hunting for an alternative partner to the French government, which holds a 17.3 percent interest in the company.
Bull declined to issue a statement Friday before trading came to a halt, saying only it is scouting out other partners.
On Monday, however, Bull shares rallied to another maximum permissible ceiling of 9.15 euros -- a 15.82 percent leap -- on the Paris bourse after Chairman Guy de Panafieu was quoted in the French business daily La Tribune as reiterating the company's desire to find a replacement for the state.
"I'm working on it," de Panafieu told the newspaper. "The possibility of strengthening the existing shareholders is not ruled out. I hope to be able to say more by the summer."
Motorola (MOT), NEC and France Telecom (PFTE) each hold an 18 percent interest in Bull. Dai Nippon Printing owns a 5.5 percent interest. The rest of the company's stock, representing about 25 percent of its total capital, floats on the open market.
Asked about Bull's short-term outlook, given its relatively weak improvement in 1998, De Panafieu said he expects increased growth and improved net results, though not to the level attained in 1997.
"In effect, this is the year we are pursuing our restructuring," he said. "The results for 2000 should no longer be impacted by the same exceptional charges and could allow us to achieve a more satisfactory level of net results."
Bull makes mini and mainframe computers. The company's product line also includes servers, terminals, smart cards and network management software. In 1998, Bull reported net income of $3 million on sales of $4.44 billion.
Before the suspension Monday, Bull's shares had rocketed nearly 88 percent from their year low of 4.87 euros, hit March 24.
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Bull SA
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