GE attempts to win French support by altering Alstom bid
France, Levallois-Perret: General Electric (GE) announced a revised $ 13.5 billion bid for the Alstom energy business aimed at the French government.
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France, Levallois-Perret: General Electric (GE) announced a revised $ 13.5 billion bid for the Alstom energy business aimed at the French government.
Instead of a straightforward takeover, GE is now proposing a structure which would enable Alstom to keep some of the assets, reports Deal Book.
GE is not altering the financial valuation of the deal, and under the revised proposal, would still get Alstom’s prized gas turbine business and its existing customer base. However, the company is proposing to create two joint ventures with Alstom: power grid business and renewable energy. GE is also conceding on a major government demand by offering to sell its rail signaling business to Alstom for an undisclosed price. The company had set a deadline of 23rd June for the offer to be accepted by the Alstom board.
Siemens did not respond to requests for comment, while Mitsubishi Heavy Industries spokesman declined to comment. Siemens and Mitsubishi made their own proposal for Siemens to take the Alstom gas turbine business and for Mitsubishi to invest in a range of Alstom units.
Source: Deal Book
Image: Fotos Govba (Creative Commons Licence)
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