Thomson SA wants to absorb the 42% of the Thomson-CSF SA defence electronics company it does not already own ahead of its own privatisation. The minority in Thomson-CSF is currently traded on the Paris Bourse. Chairman Alain Gomez told analysts that the converging technologies of communications, leisure and computers meant there was good sense in the merger. Thomson SA’s biggest business is Thomson Consumer Electronics, and a barrier to both absorbing Thomson-CSF and privatisation is the latter’s $2,000m debt burden. Gomez said the consumer business can survive for six months with that level of debt, but not for five years. The state has 76% of Thomson SA, France Telecom 20%, state-owned banks hold the balance.
