Feeds

French bail out Bull with $690m

Mouth to wallet

  • alert
  • submit to reddit

Build a business case: developing custom apps

French server maker Bull is being bailed out again. The European Commission has given the go ahead for the French government to toss Bull an impressive €517m ($690m) subject to a few terms and conditions. In addition, Bull announced today that it has tapped ex-IBMer Didier Lamouche to be its next chairman, starting 1 Feb.

All in all, it has been a busy day for the beleaguered Bull. The company announced that it will receive its new handout in January if it can repay a €450m bailout provided by the French government back in 2002. Bull must also pay the French government 23.5 per cent of its pre-tax profits over an eight-year period starting in 2005.

"The plan involves a steep reduction in overheads, a payroll cut to 7,800... and refocusing on the company’s strengths: GCOS proprietary servers, IT services linked to its branded products, and development of a new range of open servers," the EC said in a statement.

Bull has struggled to compete against US server makers IBM, HP, Sun Microsystems and Dell. It, however, seems determined to keep on fighting in the European server market.

Lamouche will be in charge of helping Bull make good on its aid and reinvigorating the company. He will replace current chairman Gervais Pellissier, who will step down at the end of January.

All might not be as bleak as it seems for Bull. It absolutely hammered Dell in Itanium server sales during the second quarter. Bull shipped a whopping 80 Itanium servers worth $5m compared to Dell's 187 shipments worth just $4m. This impressive showing makes Bull one of the major players in the Itanium market.

And before all you US capitalists get upset by the French aid for Bull, remember that Cray and a few other US firms receive sizable handouts from the US government. ®

Related stories

Bull boss flees
Bull mourns dead chairman
Groupe Bull feels cold steel of EU probe
Bull: government subsidies undermine EU dream

Build a business case: developing custom apps

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Microsoft says 'weird things' can happen during Windows Server 2003 migrations
Fix coming for bug that makes Kerberos croak when you run two domain controllers
Cisco says network virtualisation won't pay off everywhere
Another sign of strain in the Borg/VMware relationship?
VVOL update: Are any vendors NOT leaping into bed with VMware?
It's not yet been released but everyone thinks it's the dog's danglies
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.