US investors urge French Alcatel to stop Sudan activities

Mar 7, 2006 (LONDON) — Alcatel SA said it’s been urged by some U.S. investors to stop activities in Sudan, though the French telecommunications equipment maker plans to continue to do business in the war-torn African nation.

“Alcatel has also been contacted by the controller or administrator of pension funds in certain of the states with pending legislation requesting that we cease doing business in Sudan. We also recognize that a few U.S. colleges and universities have adopted policies similar to the pending legislation,” the firm said in a Securities and Exchange Commission filing.

U.S.-based pension funds and endowments, including the California Public Employees’ Retirement System, own only 1.4% of its shares, so even a complete divestiture wouldn’t have a material impact on its market value, Alcatel said.

Alcatel doesn’t believe such a total divestiture would occur, it added.

It’s in talks with CalPERS and said a divestiture would be counterproductive to helping the Sudanese population.

“We sincerely hold the view that our limited operations in Sudan help foster the dissemination of communication services to the population as a whole and as such, our activities help promote democracy and economic development,” the company said.

Alcatel added that it’s in compliance with U.S. laws on exports to Libya, Syria, Sudan and Iran, noting that representatives from Alcatel Alenia Space have met with U.S. governmental officials to ensure such compliance.

(MarketWatch)