Alstom confirms consideration of £10bn GE acquisition deal

Posted on 30 Apr 2014 by The Manufacturer

Siemens still considering alternative offer

UPDATE: Alstom has said it is considering a £10bn acquisition deal from GE for the energy side of its business.

If the deal is to go ahead it would allow Alstom, whose power business generated £15bn in sales last year, to take the the proceeds and refocus them on its transport and TGV high-speed trains projects.

However, the company made it clear in a statement that its board also reviewed a declaration of interest received from German firm Siemens, regarding an alternative transaction. Siemens has expressed interest in both Alstom’s power turbines and transport projects.

Siemens said it would make an alternative offer if it was given access to the company’s books, to which Alstom has agreed saying it would allow the German company “fair access to information needed to make, should it decide to do so, a binding offer.”

Alstom said that, “acknowledging unanimously the strategic and industrial merits of this offer and having noted the publicly announced undertakings by GE, has decided to set up a committee of independent directors, led by Jean-Martin Folz, to review before the end of May.”


Earlier: German firm Siemens has made a proposal to rival General Electric’s bid to acquire French engineering firm Alstom

Siemens has proposed “strategic opportunities” between itself and the privately-owned Alstom, which last week was subject to reports it was close to being acquired by GE after the American giant entered discussions with the French government.

The new twist in the deal comes at the start of a week where GE boss Jeff Immelt is expected in France to meet senior politicians in Paris in an attempt to thrash out a $13bn (£7.7bn) deal.

French newspaper Le Figaro reported on Sunday that Siemens is offering Alstom half of its train-making business plus cash.

In return Siemens wants Alstom’s business that makes turbines for the energy industry, according to the report.

Both companies are yet to acknowledge takeover talks, but France’s economy Arnaud Montebourg said in a statement: “GE and Alstom have their calendar, which is that of shareholders, but the French government has its own, which is that of economic sovereignty.”

As speculation of a deal between Alstom and GE grew last Thursday, Alstom shares jumped by 11% on the stock exchange.