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Tuesday, June 24, 2014

France has 2 billion euros on hand to fund stake in Alstom-Montebourg, (NYSE: ORAN)

The French state has enough cash available from previous share sales to fund the purchase of a 20 percent stake in Alstom, Economy Minister Arnaud Montebourg said on Tuesday. The French state secured an option to purchase 20 percent of Alstom from its current top shareholder Bouygues on Sunday, clearing the way for an agreed tie-up between Alstom and General Electric."Following the sale of (shares in) Airbus, Safran and Aeroports de Paris, we now have over 2 billion euros that will be used to take that stake in Alstom," Montebourg told France's lower house during question time.Shares in Safran, EDF, Orange and Airbus had on Monday been the worst performers on the Paris stock exchange, as traders feared the government would need to sell shares in those companies to fund the purchase.

Orange SA, formerly France Telecom SA, is a France-based company that is engaged, principally, in the provision of integrated telecommunications services. Shares of ORAN traded higher by 0.44% or $0.07/share to $16.04. In the past year, the shares have traded as low as $9.10 and as high as $17.43. On average, 556431 shares of ORAN exchange hands on a given day and today's volume is recorded at 138774.