France's new sovereign wealth fund made its debut on Thursday as its creator and champion, President Nicolas Sarkozy, vowed to use €20 billion ($25 billion) in assets to protect French companies from foreign bidders and invest in strategic industry.
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"The day we don't build trains, aeroplanes, automobiles and ships, what is left of the French economy? Memories," said the president. "I will not make France a tourist reserve."
The fund will launch with €6 billion of cash, to be raised in the debt markets, and €14 billion of equity assets, which will come from the existing holdings of the French state and the state-controlled investment fund Caisse des Dépôts et Consignations, or CDC.
The fund would allow France "to profit from the crisis by accelerating economic change," Sarkozy said at a presentation at Montrichard in central France.
The portfolio, which will be managed by CDC, would be the world's 20th-largest long-term investor, Sarkozy claimed. It will take minority stakes in industries threatened by the financial crisis but which had a long-term future and would be used to support strategic industry. - Paul Whitfield
Comments
The announcement of the set up of this French government investment fund comes late in a never seen before context.
Some investment funds, when not in too bad shape yet, get enough cash to get national high technologies out of their born country.
Weeks ago, European leader in rechargeable battery, Uniross SA, was placed under french « Chapter 11 ». It is threatened with takeover by one of its Asian competitor, which according to some sources, would not have hesitated to mount an extensive disinformation on its leader for deprive any refinancing provisional solution.
Yet Uniross’ technology develops fuel cell well advanced in partnership with EAC. Imagine the potential industrial and guarantee sovereignty and independence that represents such technology!
Welcome this governmental initiative but greater care would have avoided such haste.
Close attention on every national key technology players are strategic.
Fast actions are needed
Hope it is not already too late!
http://eco.rue89.com/2008/11/20/uniross-une-pme-torpillee-par-ses-banquiers