GEC Alsthom, the power sector company owned jointly by GEC and Alcatel Alsthom, is to make a public share offering during the first six months of 1998.
The company will be renamed Alsthom. It will be based in Paris and incorporated under French law. For tax reasons, the company is currently registered in the Netherlands.
GEC and Alcatel Alsthom will each retain a 24 per cent stake in Alsthom. The remaining 52 per cent of the shares will be listed on the Paris, London and New York stock exchanges. Alcatel Alsthom will also, subject to shareholder approval, be renamed Alcatel.
GEC Alsthom is currently rated the second largest company in the sector after ABB. Analysts believe the company is worth between $5 billion and $6 billion. Each of the partners could raise $1.7 billion through the flotation.