Feeds

French bail out Bull with $690m

Mouth to wallet

  • alert
  • submit to reddit

Designing a Defense for Mobile Applications

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

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.