THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Tuesday, October 22, 1996 TAG: 9610220238
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
LENGTH: 20 lines
The French government said Monday it is selling Compagnie Generale Maritime, an unprofitable shipping company, to rival Compagnie Maritime d'Affretement.
No price was announced for the sale. CMA was one of nine bidders for CGM, including four other European lines and one South African line. The combined CMA-CGM will have 50 ships and rank 4th in Europe and 14th worldwide. CGM has sopped up nearly $1.4 billion in French subsidies as it has struggled to compete with low-cost Asian shipping lines. Both shipping lines serve Hampton Roads, where the merger's impact could not be determined. (Bloomberg Business News) by CNB