Alstom said to accept ~$13B GE bid for energy business


Alstom's (ALSMY, AOMFF) board reportedly has voted to accept an offer from GE to buy its energy business for ~$13B.

The decision, expected to be announced as soon as tomorrow, came as a French government minister advocates for a rival proposal from Siemens (SI), but the preliminary deal would give GE a leg up in the politically charged battle.

The deal still would need approval from Alstom's union and other constituents.

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Comments (17)
  • U2A Ventures
    , contributor
    Comments (334) | Send Message
     
    who knows what is really going on with this anymore
    29 Apr 2014, 06:20 PM Reply Like
  • Mikie713
    , contributor
    Comments (554) | Send Message
     
    What would $GE plan to do with Alstom here in the US? If anything?
    29 Apr 2014, 08:32 PM Reply Like
  • Thackery
    , contributor
    Comments (3) | Send Message
     
    Give it some time....after all this is a huge deal for both companies. For me, I'm keeping my GE stock.
    29 Apr 2014, 09:26 PM Reply Like
  • Nettligent
    , contributor
    Comments (1346) | Send Message
     
    Alstom generates a steady income and have a solid worldwide customer bases. Together GE Alstom can offer its technical advanced power transmission and smart grid to modernize US and South America.
    If it works well, North and South America are going to have the best bullet trains to serve America, create long term healthy jobs and everything we are dreaming all these years.
    Like any French companies, Alstom needs good strong partner like GE to pull themselves out of their own mess.
    GE Alstom is the best merger for a very long time for both France and America.
    29 Apr 2014, 10:20 PM Reply Like
  • doc47
    , contributor
    Comments (1715) | Send Message
     
    How good a deal will this be? Can we trust the French unions? This is the home of 2 months of annual vacation, socialized medicine, and the work ethic of Maynard G. Krebs!
    30 Apr 2014, 12:22 AM Reply Like
  • IgnisFatuus
    , contributor
    Comments (2727) | Send Message
     
    <...the work ethic of Maynard G. Krebs! >
    You Rang?
    30 Apr 2014, 09:37 AM Reply Like
  • Mikie713
    , contributor
    Comments (554) | Send Message
     
    Doc47, all the Latin words in English come to us by way of the French; the Police and Fire Depts are modeled after the French institutions; our notions of democracy and Republic forms of political organization are also modeled after the French. Mmmm, not bad for a society w/the work ethic of M. G. Krebs.
    30 Apr 2014, 01:00 AM Reply Like
  • doc47
    , contributor
    Comments (1715) | Send Message
     
    You're talking ancient history, I talking today and tomorrow. France today is hardly an example of Capitalism or industrial innovation. GE had to promise to hire "more workers" and make other labor concessions for this deal to go through. I fear that little phrase comes back to haunt them. Believe me I hope I'm wrong but I don't see this being a great deal for GE or its shareholders.
    4 May 2014, 09:32 AM Reply Like
  • Mikie713
    , contributor
    Comments (554) | Send Message
     
    France protecting and looking out for its workers upset you, Doc? Yes, I understand it's a "foreign concept", in fact some of your ilk actually ascribe to a socialist agenda. "The promise to hire more workers". How dare they impose their will on poor old American capitalist tax dodging General Electric! I've held $GE for more than a decade and half. And you're NOT wrong, this isn't a great deal for shareholders. But nothing in the last 15 years has. So France or no France, take a step back and look at the big picture.
    4 May 2014, 10:50 AM Reply Like
  • doc47
    , contributor
    Comments (1715) | Send Message
     
    Last week just proved me right--The French government (not Alstom) upped the price and tried to set up a bidding war with Siemens. Run away GE, as fast as you can!
    11 May 2014, 09:26 AM Reply Like
  • Dale Mackey
    , contributor
    Comments (151) | Send Message
     
    Spin off consumer finance and buy the energy aspects of a major European .. Seems like a good plan to me, fraught with risks of course. I tend to view Europe as about 18 months behind the US in terms of recovery, with much more upside "over there" than here in the states. It's my macro view that this may be a wise investment of capital going forward..
    30 Apr 2014, 01:20 AM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (4300) | Send Message
     
    Has anyone seen a FMV for Alstom's energy business??? IOW, how much over current FMV is GE's offer??
    30 Apr 2014, 03:24 AM Reply Like
  • joegillam
    , contributor
    Comments (1132) | Send Message
     
    There goes the dividend increase!
    30 Apr 2014, 07:48 AM Reply Like
  • Mikie713
    , contributor
    Comments (554) | Send Message
     
    Joe, are you inferring that because $GE might pay a little more for this company they would take it out of its shareholder's dividends? Just curious.
    11 May 2014, 12:46 PM Reply Like
  • joegillam
    , contributor
    Comments (1132) | Send Message
     
    Yep, Mikie, there is strong thought that it is over priced.
    13 May 2014, 08:16 AM Reply Like
  • Mikie713
    , contributor
    Comments (554) | Send Message
     
    Joe, the reason I ask this is because $GE has a cash surplus from a few years of avoiding corporate taxes in the US. I don't see why that cash surplus isn't returned to investors in one form or another. This appears to be similar to what $BAC just pulled with their investors, "Holy smokes, where did that 4 billion dollars go? Oh, never mind, we'll just nick the promised buyback/dividend." It's as if they're playing a high stakes version of Three Card Monte with their investors. $GE absolutely has more than what's needed on hand to pull off the purchase of this company without it having to hurt those who've stuck with them through the shoddiest of its recent history.
    13 May 2014, 12:50 PM Reply Like
  • joegillam
    , contributor
    Comments (1132) | Send Message
     
    You are so right, Mike. They have cash surplus and many investors have stuck with them. So, then what is their excuse or reason for not raising the dividend to its pre 2008 rate? It did not go down a couple of cents at a time, so it need not be raised a couple of cents at a time.

     

    It's a good company and pays a decent dividend, but my heavens, it's just not user friendly.

     

    Joe In Georgia
    14 May 2014, 07:59 AM Reply Like
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