Shares in French engineering company Alstom have risen by 17% following reports it is to be bought by American rival General Electric.
News agency Bloomberg reported both parties have discussed the potential deal with the French government, which would see the manufacturer of trains and power plants sold for $13bn (£7.7bn).
The report also speculates that a deal may be confirmed by next week, with the French company saying it would updates its shareholders on May 7, coinciding with the release of its annual results.
It is believed any deal would give Connecticut-based GE control of Alstom’s technology for power transmission and power plant maintenance and would continue its shift towards jet engines, locomotives and industrial equipment.
A statement released by Alstom said: “In response to recent speculation in the economic press, Alstom is not informed of any potential public tender offer for the shares of the company.
“The group constantly reviews the strategic options of its businesses.”
Alstom, which employs 93,000 and has interests across over 100 countries, saw shares plunge by 14% in January due to what it said was a lowering of demand for power plants.
This followed from November last year when the company announced 1,300 job cuts as well as the sale of its transport business, which manufactures high-speed TGV trains for Eurostar.
