Alcatel, the French telecoms equipment manufacturer, has cut its debt burden by 20% after launching a tender offer to buy back up to €525m ($603m) of its outstanding bonds in a bid to reduce the cost of servicing its debts.

Alcatel has been under pressure from a weak environment in the telecoms equipment industry and has seen its credit rating fall into high-yield territory. The company had aimed to slash its debt burden by more than 30% through the tender offer on three of its outstanding French franc and euro-denominated bonds that are due to mature in 2004 and 2005.