UPDATE 1-Gores Group makes offer for Safran's Sagem Comms

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By Sudip Kar-Gupta

PARIS, Oct 28 (Reuters) - French conglomerate Safran (SAF.PA: Quote, Profile, Research, Stock Buzz) said it had received a 383 million euro ($550 million) offer from U.S private equity firm the Gores Group for its Sagem Communications arm.

Safran has been the subject of rumours linking it to a possible merger with French defence electronics group Thales (TCFP.PA: Quote, Profile, Research, Stock Buzz), and the sale of Sagem Communications might facilitate an eventual deal with Thales or another company.

Safran emerged from a 2004 merger between aerospace group Snecma and telecom equipment firm Sagem. However, the new company soon faced losses at Sagem units, problems with the weakness of the U.S. dollar and internal management turmoil.

Sagem Communications, part of Safran's 'Communications' branch, offers broadband and convergence solutions, including printing terminals, digital TV set-top boxes, broadband and residential terminals, and telecom systems and partnerships.

The company has 6,500 employees and had revenues of 1.3 billion euros in 2006.

Safran said Gores Group was buying Sagem Communications for an enterprise value of 383 million euros.

It added that the deal should be finalized in coming months following consultation with staff organisations.