Is It Too Late For Thomson?

France's ailing consumer-electronics giant needs big fixes fast

France's Socialist leaders must be cursing their predecessors for leaving such a headache behind. Last fall, former Prime Minister Alain Juppe tried to sell state-owned Thomson Multimedia, the ailing consumer-electronics giant, to South Korea's Daewoo Corp. for one franc plus a $1.8 billion government recapitalization. Its workers struck, triggering a violent public backlash that halted the privatization. Now, France's new government must pay the price. On July 29, TMM posted a first-half loss of $228.7 million. And its new management still wants the recapitalization.

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