Abstract

The article tells the story of Alstom, a national champion born in 1989 from Alcatel and privatized in 1998. We document how the a technologically advanced and firmly established company runs into troubles due to its bulimic growth strategy which brings about excessive risks and leverage. The logic of the rescue by the state and the intervention by the European commission are briefly discussed. The main lesson we draw is that establishing "national champions" is certainly more difficult than it may appear.