BOUYGUES: The approaching expiry of the state’s options could revive the prospect of the disposal by Bouygues of its Alstom stake
Why review the case now?
- The call options sold by Bouygues entitling the French State to acquire up to 20% of Alstom will expire on 17 October.
- The removal of these contractual obligations, which have so far deterred Bouygues from selling a large stake, will open up fresh disposal opportunities.
- Assuming the sale of its entire block of 62m shares at c.€28.00, the resulting c.€1.75bn proceeds would allow Bouygues to materially boost its dividend and/or lower its debt.
- The launch of an Exchangeable Bond could be an appropriate way to limit the market impact of a placing; the timing could be influenced by the potential involvement of Alstom in consolidation initiatives (see appendix).
see full note atatched