They say the wide range reflects the dearth of detail about the groups assets and the value of its patents.

The previous conservative government tried in 1996 to sell TMM, Europe's second-largest consumer electronics group with 39 billion francs in sales, for one franc, or 20 cents, after a recapitalisation.

The failed plan, rejected by Frances Privatisation Commission, was part of an effort to privatise the group and its Thomson-CSF defence electronics subsidiary in one deal.

Last Thursday, the Socialist-led government said it would reduce its stake to 70 per cent as part of a capital increase in which Frances Alcatel, Microsoft, Japans NEC and Hughes Electronics unit DirecTV would each end up with 7.5 per cent.

‘‘The group is worth what's been put into it, or roughly the 11 billion francrecapitalisation carried out in September 1997, said one analyst, who asked not to be identified.

‘‘When (former Conservative prime minister Alain) Juppe said the group wasn't worth anything, he was right. Because if the business -- the staff, the factories, the brands -- is worth something, theres a lot of debt on the other hand, he said.

The group, which makes televisions, video cassette recorders and decoders and employs 50,000 people worldwide, recorded a net loss of 2.78 billion francs last year, bringing its cumulative losses since 1994 to 7.8 billion.

However, it had an operating profit of 143 million francs in 1997 and has forecast an operating profit for this year.

Its 1998 first-half loss shrank to 262 million francs from 2.57 billion in the first half of 1997, and it had a half-year operating profit of 64 million francs.

Next year, it will start to reap revenue estimated at around one billion francs from patents held by its US subsidiary RCA.

To calculate the valuation, analysts havetaken a fraction-- between 30 and 50 per cent of the turnover -- and subtracted the debt of around 5.6 billion francs.

‘‘Its an extremely difficult sector that's not very profitable and where margins are thin. The weaker the margins, the smaller the multiple applied to sales, said another analyst, who is bullish on this weeks deal.

‘‘This round of partners is ideal. It will bolster the groups outlook and boost the valuation, the analyst said.

Christophe Chaperon at Paris brokerage Oddo declined to put a value on the company but said that ‘‘the chosen partners don't have a habit of wasting their money.

‘‘The fact that they were incited to take stakes is a very strong signal. TMM now has real value industrially, he said.

EIFB analyst Guillaume Angue is more circumspect, saying the companies are taking little risk in buying the stakes and probably got them at a very good price.

The key valuation will be the one set when TMM is floated --something analysts expect will happen.

‘‘Its the pattern wesaw at Bull, Thomson-CSF and now Aerospatiale -- first the restoration of financial health, then the search for partners, and then the market flotation, Chaperon said.

Analysts say the final stage, attracting market investors, will be harder and will take time.

One analyst said it would take several years of decent and growing profits. ‘‘Theres an improvement in the results relative to 1997, but TMM is not out of the woods yet, he said.