Nortel Matra Cellular SA, the cellular phone joint venture between Northern Telecom Ltd and Matra Communication SA, appears to be the biggest beneficiary of Northern’s increased ownership stake in Matra, announced last month (CI No 2,464). The announcement brought forward the original date for increasing Northern Telecom’s stake by approximately one year. Now instead of enabling the Canadian switch manufacturer to up its stake to 43%-44% beginning in 1995, Northern Telecom is expected to hold 50% by the middle of 1995. Of the $140m or so Northern Telecom is expected to pay the Lagardere Group for increasing its participation, between $50m and $100m is expected to go to the cellular venture, says La Tribune-Defosses. The capital injection will also finance the hiring of 150 engineers at its headquarters in Bois-d’Arcy, in the Paris suburbs. The companies have good reason for increasing the capital for their venture. Created in February, 1993, Nortel Matra saw about $90m in revenues. So far this year, the company has racked up some $275m with three contracts. Last November, Emile Graton, president of Nortel Matra, disclosed his objectives: his five-year plan is to grow the company to $1,000m annual sales and to capture 25% of the world market. Ambitious, if nothing else.
