FRENCH STATE SELL-OFFS RAISE 52 BILLION FRANCS
The French government's privatisation
program, which began late last year, has earned the French
State about 52 billion francs to date, the Finance Ministry
said.
    Sources close to Finance Minister Edouard Balladur said the
revenues raised from the privatisation program would be used in
priority to pay off public debt, which stood at 398.2 billion
at the end of 1986.
    The Ministry said in a communique that the returns included
banking group Societe Generale <SGEN.PA>, which began its
two-week public flotation last Monday.
    The government has carried out eight flotations, as well as
the private sale of telephone group <Cie Generale de
Constructions Telephoniques> (CGCT) since its denationalisation
scheme began last December with the sell-off of glass makers
Saint-Gobain <SGEP.PA>, it added.
    The government has pledged to privatise 66 state-owned
industrial, banking and insurance companies by 1991.
    Other companies to be sold to the private sector in the
near future are television network TF-1 later this month and
banking group Cie Financiere de Suez <FSPP.PA> in the autumn.
    The ministry said TF-1's forthcoming sell-off meant that a
third of the government's programme would have been completed
in less than nine months.
    Balladur on Sunday rejected press and opposition charges
that the share prices for privatised companies had been pitched
too low.
    He said that the average premium of shares trading on the
Bourse was between 15 and 30 pct over their offer price. This
compared with premiums of between 60 and 80 pct on similar
share flotations in Britain.
 REUTER
