GE in talks to buy Alstom for $ 13 billion
General Electric (GE) is in talks to buy French Alstom SA for approximately $ 13 billion, according to Bloomberg.
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USA, Connecticut: General Electric (GE) is in talks to buy French Alstom SA for approximately $ 13 billion, according to Bloomberg.
The deal may be announced as early as next week, the report cited. Alstom has been greatly affected by a drop in orders for power transformers from utilities, which are suffering in turn from weak electricity prices.An Alstom spokeswoman denied the report, saying “these are totally unfounded rumours” and a GE spokesman declined to comment.
Alstom shares have dropped 20 % in the past 12 months on concerns over its cash flow. According to Reuters, the group now has a market capitalisation of about $ 10.37 billion.
GE has been targeting acquisitions in the $ 1 billion to $ 4 billion range but may be willing to strike a larger deal.
GE Chief Financial Officer Jeff Bornstein said in an interview recently that the conglomerate would consider spending more if the deal was “absolute strike zone” and offered significant cost savings.
Source: Reuters