As reported briefly, AT&T Co is buying its way into the French private exchange market by taking control of Barphone SA, a manufacturer based in Saumur, in what should be ultimately a total investment of $44.6m. Barphone had already said that it was in talks with an unnamed foreign industrial group. AT&T will initially buy 52% of the company’s capital from its founder and president Michel Apchin and 21% from other minority shareholders. Apchin will retain a 9.9% stake. The operation would give AT&T a total of 74.82% of the company for $44.5m or approximately 70% of Barphone’s 1992 revenues of $63.6m. We’ve been very conscious of this small company’s flexibility and capacity to react in the market. We have a complementarity of product line: Barphone’s biggest systems correspond to our smallest PABXs, said AT&T in a statement. Bob Egan, AT&T’s international vice-presindent, global business communication systems, said one of the company’s main priorities will be to help Barphone increase its export volume. Barphone claims 25% of the French market for PABXs of less than 25 ports.
