Moulinex awaits rescue judgement

Famous for its mixers

Moulinex-Brandt manufactures everything from electric razors to makers and food processors, and has a total of 21,500 employees worldwide.

However, the company was hit hard in the late 1990s by the emerging market crises in Asia and Russia - when sales plummeted and Asian competitors cut prices.

The fate of the Franco-German household appliance maker, hangs in the balance, as a French commercial court on Monday decides which company bidding for a stake in the bankrupt firm will be successful.

Thousands of jobs are at stake, and emotions in France's trade unions run high over this matter.

Political concern

The French prime minister, Lionel Jospin, has made the future of 11,000 jobs at the French Moulinex plants his personal priority.

The company, which became a household name for its food mixers, was once considered a showcase of French industrial strength.

But since September, when the former bastion of domestic appliances filed for bankruptcy, serious doubts were cast over the firm's survival.

However, two companies have shown an interest in rescuing Moulinex, rival, SEB, and the property group Fidei - both of which want to take over just a part of the firm.

Later on Monday, tithe commercial court in Paris is expected to decide which bidder it favours.

French trade union leaders say they prefer the bid by Fidei, which could save around 5,400 jobs, compared with SEB's guarantee of 3,600.

But Fidei can only spend around $27m - one tenth of what SEB is prepared to invest.