An enormous new threat faces Groupe Bull SA following the accession of Mme Edith Cresson to the premiership in France. Mme Cresson says she is not only considering blocking the proposed conversion of NEC Corp’s 15% stake in Bull HN Information Systems into a 5% stake in Compagnie des Machines Bull, but would also like to force NEC to sell the stake. As NEC builds the top-end mainframe line sold by Bull and also builds mainframes compatible with Bull’s flagship DPS 7000 line, such a move by Mme Cresson would threaten the company with an onslaught on its core user base by NEC in partnership with one or more systems integrators. There has also been talk of Bull HN threatening to file Chapter 11 bankruptcy papers to reduce the amount France would have to pay for the 15% NEC stake, a move that would further undermine the company’s standing.
