ATT-PHILIPS BID FOR CGCT OUTLINED

  American Telephone and Telegraph Co and
  Philips Telecommunications BV (APT) would hold 36 pct through
  direct and indirect holdings in France's &lt;Cie Generale de
  Constructions Telephoniques> if a joint bid with French
  partners for the soon-to-be-privatised firm succeeds, a
  director at one of the partner firms said.
      Marc Mathieu of &lt;Societe Anonyme de Telecommunications>
  SAT, told journalists the bid foresaw a direct stake of 20 pct
  for APT, the joint firm set up by the U.S.'s ATT &lt;T.N.> and the
  NV Philips Gloeilampenfabrieken &lt;PGLO.AS>.
      The other 80 pct would be owned by a holding company made
  up of SAT, APT, Cie du Midi &lt;MCDP.PA> and five mutual funds.
     Under French law, foreign investors are restricted to a 20
  pct direct stake in privatised companies but can boost their
  stake to 40 pct through indirect holdings.
      The make-up of the holding company, however, is subject to
  close discussions within the government due to legal queries
  over the nationality of the mutual funds, a Finance Ministry
  official said.
      Although bought by French citizens they are managed by
  foreign banks &lt;Morgan Guaranty Trust Co of New York> and
  &lt;Banque de Neuflize, Schlumberger, Mallet SA>, controlled by
  Algemene Bank Nederland NV &lt;ABNN.AS>, an SAT spokesman said.
      CGCT, which controls 16 pct of the French public telephone
  switching market, is to be sold by the government for 500 mln
  francs by private tender.
      Five groups are bidding for the company and the government
  has said it will choose CGCT's new owner by the end of April.
      APT vice-president Wim Huisman told a news conference a
  capital increase was envisaged if SAT-APT wins CGCT, but
  declined to give details or say how an increase would affect
  foreign stakes in CGCT.
      In 1985, CGCT posted losses of 200 mln francs on sales of
  three billion after 1984 losses of 997 mln francs.
      A joint SAT-APT statement added that buyers were committed
  to investing 240 mln francs in CGCT research and production
  plants. The APT-SAT offer includes a provision for CGCT to
  produce APT 5ESS-PRX switching technology and adapt it to
  French standards.
      The tender was launched after a 1985 draft agreement for
  ATT to take over CGCT was abandoned following the introduction
  of the French government privatisation laws which reopened
  bidding among a wider range of applicants.
      Other candidacies to take over CGCT include West Germany's
  Siemens AG &lt;SIEG.F> allied with Schneider SA &lt;SCHN.PA>
  subsidiary Jeumont-Schneider, Sweden's Telefon AB LM Ericsson
  &lt;ERIC.ST> allied with Matra &lt;MATR.PA> and Bouygues SA
  &lt;BOUY.PA>, Italy's &lt;Italtel>, and Canada's Northern Telecom Ltd
  &lt;NTL.TO>.
  

