France Telecom shares were floated on the stock exchange in October 1997, despite trade union opposition, provisionally ending a long period of debate and conflict inside the company between supporters and opponents of privatisation.
Download article in original language : FR9710173NFR.DOC
France Telecom shares were floated on the stock exchange in October 1997, despite trade union opposition, provisionally ending a long period of debate and conflict inside the company between supporters and opponents of privatisation.
France Telecom floated around 20% of its capital on the stock market on 20 October 1997, following a Government decision (FR9706150N). The various trade unions had agreed to oppose this flotation which, according to them, was not necessary to maintain the company's competitiveness.
The CGT union handed in a petition, while the staff referendum called for by the SUD- to say "yes" or "no" to privatisation - was turned down by management. A vote was organised anyway (of the 50% who turned out, 80% voted "no"), but it had no effect on the process under way. A strike launched by the two most representative unions, (CGT and SUD) was a failure. All in all, the operation was a success: almost 4 million private investors bought shares. Among them were two-thirds of France Telecom's 160,000 staff, who are now shareholders in their company after taking advantage of a discount on the price of the shares. Besides, the fact that the company and Deutsche Telekom now hold stakes in each other's capital reinforces the prospects for international expansion of France Telecom, which is already present in a number of foreign markets.
Eurofound recommends citing this publication in the following way.
Eurofound (1997), France Telecom shares hit the stock exchange, article.
