The European Commission gave the green light to a long-awaited state rescue package of about 517 million euros ($688 million) for struggling French computer maker Bull on Wednesday. The Commission, the executive arm of the European Union, said its approval was on condition the restructuring aid was not paid before the end of this year and that previous aid given to the company in 2001 and 2002 was reimbursed first.
"Under these conditions, the Commission believes the return to viability is sufficiently assured and that the aid, despite the significant sum involved, is compatible with (EU) rules," it said in a statement.
Shares in Bull were suspended for two days on Wednesday before the expected approval of the Commission. Trading was due to resume on Friday, December 3.
Bull made no immediate response to news the aid package had been approved, but the company told Reuters it would hold a board meeting on Thursday morning and issue a statement after that. It would not confirm a report by French newspaper Le Figaro that nomination of a new chairman would be on the meeting's agenda.
France's aid to Bull is a critical part of a major restructuring programme which the Commission has been investigating since March.
Le Figaro reported on Wednesday that Didier Lamouche, a former IBM executive, should be named as chairman of the board.
Managing Director Gervais Pelissier has been acting as Bull's chairman since Pierre Bonelli, its chief executive, died in April.
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