PARIS, March 26 (Reuters) - French investment firm Wendel Investissement posted a sharply wider 2002 net loss of 650 million euros on Wednesday after making a giant provision for the devaluation of its stake in Cap Gemini Ernst & Young .
It a statement Wendel, which recently jointly purchased electrical switch maker Legrand after its failed merger with Schneider Electric , said it had dived to a 650 million net loss from a 379 million net loss a year earlier, after making a 734 million euro provision for the depreciation of its 11 percent stake in consultancy Cap Gemini Ernst & Young.
Though Cap improved its profitability in the second half, it lost 70 percent of its value in a year in a depressed market, Wendel said.
"That has led us, out of caution, to make a depreciation provision of 734 million euros which was already largely included in our June 30 accounts," Wendel said in a statement.
The group is proposing a dividend of one euro and said simplification of its structures in 2002 and a new strategy being put in place with its Legrand acquisition financed by its exit from car parts maker Valeo gave it a solid growth outlook for 2003.
The group is holding its annual shareholders' meeting on May 27 when it plans to seek approval for co-opting Sagem chairman Gregoire Olivier to its board.