France Telecom Chairman Michel Bon told a French newspaper that the partially privatized group will offer its shareholders a 4.5% return on their investment. By paying out from June 1998 40-50% of our net profit, we will guarantee our shareholders a yield which, taking into account the (share) purchase price and the tax credit, will exceed 4.5%, Bon was quoted as saying by French daily, La Tribune. Meanwhile, the move by three France Telecom unions to hold a one day strike on Tuesday to protest at the French government’s planned part privatization of France Telecom, saw a turnout of just 16%. The strike was called by the CGT, Sud and Autonomous unions while four other unions had distanced themselves from the move. Earlier in the day the France Telecom management had expected the strike turnout to exceed the 30% seen at the previous large-scale demonstration in June 1996. According to France Telecom the low turnout reflected that the staff have accepted that the company must privatize to compete in the deregulated European telecoms market due on January 1 1998.
