The decision by President Jacques Chirac to hold the French election next month has postponed plans for privatizing France Telecom SA. Finance Minister Jean Arthuris issued a statement saying that the sale of a 30% stake in France Telecom, which was to have been announced the day after the first round of the election on May 25, would now be delayed by four weeks. The Socialist party opposition has said it wanted France Telecom to remain in state hands. The minister said that the election would not affect the timetable for the private sale of Thomson-CSF, due later this year. The delay is designed to remove any political uncertainty from influencing the deal. Private French investors will now have to wait until June 5, four days after the second round of the election, before they can reserve shares. The initial public offering will now run from June 24 to July 1. The sale, which could be worth up to $36bn, is likely to give France Telecom the biggest market capitalization in France, points out Reuters, putting it ahead of oil giant Elf Aquitaine.
