Alstom, the engineering firm being rescued with help of the French state, has launched a €2.2bn ($2.72bn) rights issue and debt-equity swap, priced at up to 50% below the market price.

Alstom said on Tuesday it was issuing up to €1.565bn worth of new shares, with preferential rights for existing shareholders, at 40 cents a share in cash or 50 cents if paid for with Alstom debt.