20 September 2002 – French/Swedish engineering group Alstom has asked the French stock exchange regulatory authority (COB) to investigate trading in its shares after the price fell significantly for two consecutive days.
Alstom said they were concerned by the markets reaction, apparently in response to unfounded market rumours and despite a market statement from the Company yesterday that its Restore Value plan remained on track.
Alstom is undergoing an asset disposal programme in order to reduce a massive debt burden. It raised €600m in a rights issue earlier this year and hope to eliminate a further €2bn of borrowings with sales of its property portfolio.
Alstom shares lost more than 25 per cent of their value in 24 hours and in a statement said today it had requested the enquiry, “Considering these circumstances and the absence of any new development or information”.