Alstom considering GE's railway signaling division


Alstom (ALSMY, AOMFF) is interested in taking over GE's railway signaling business as part of the current talks over the sale of its power division, CEO Patrick Kron says.

Kron's comments echo the request made by the French economy minister, who suggested earlier this week that GE transfer its railway division to Alstom, but railway signaling is a crucial business with high profit margins that GE may be loathe to cut loose.

GE also manufactures locomotives for freight trains in the U.S., but Kron says Alstom isn't interested.

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Comments (12)
  • rubel
    , contributor
    Comments (597) | Send Message
     
    ge also builds locomotives for all types of rail operations NOT JUST FREIGHT!

     

    this whole deal is either going to make or break g.e. immelt knows this and his future is on the line. if history proves right, immelt will flop!....and so goes the shareholders of ge.

     

    why should the shareholders of g.e. give up the rail division that makes g.e. a hugh profit, and g.e. buy into a company in europe that had to be rescued by the french government, with all of its labor issues, high tax rates.

     

    this is going to be lmmelts legacy.....and he is going to be remembered as the biggest flop in corporate history.
    7 May 2014, 09:16 AM Reply Like
  • elkarlo
    , contributor
    Comments (1639) | Send Message
     
    Indeed. Keep rail, as it is a good and growing business. I will sell my shares if they do sell the locomotive operations for Alstrom. This is getting absurd at this point
    7 May 2014, 09:50 AM Reply Like
  • Felix Lumpe
    , contributor
    Comments (750) | Send Message
     
    I understand the tax motivation in doing a deal like this. I have not run all of the numbers and don't know whether such deals could be worked out but wouldn't it make more sense for GE to try to structure deals for the relevant businesses with the likes of ABB or Siemens, two well run companies, rather than focus on a questionable company in a country with a dysfunctional liberal leaning government? This deal is sounding more and more like a nightmare .....something that might help to assure continued dismall shareholder value for the foreseeable future.
    7 May 2014, 10:16 AM Reply Like
  • Felix Lumpe
    , contributor
    Comments (750) | Send Message
     
    I understand the tax motivation in doing a deal like this. I have not run all of the numbers and don't know whether such deals could be worked out but wouldn't it make more sense for GE to try to structure deals for the relevant businesses with the likes of ABB or Siemens, two well run companies, rather than focus on a questionable company in a country with a dysfunctional liberal leaning government? This deal is sounding more and more like a nightmare .....something that might help to assure continued dismall shareholder value for the foreseeable future.
    7 May 2014, 10:16 AM Reply Like
  • sami12159
    , contributor
    Comments (29) | Send Message
     
    tell Alstrom and France jump in the ocean. Any deal with them stinks. GE doesn't need problems with atomic reactors which they could get stuck with.
    7 May 2014, 11:16 AM Reply Like
  • Lineman75
    , contributor
    Comments (11) | Send Message
     
    Guys its ALSTOM not Alstrom. This is meant to be an investment forum. Taking swipes at whole nation states just because you do not like their Government or policies is not on, "Dysfunctional liberal leaning"and we wonder why the rest of the world hate us !

     

    How many of you guys have a Passport and have ever ventured outside of the US on vacation ?

     

    Lets be honest here how would we feel if Red Chinese company wanted to buy up GE ? How many would be happy with that scenario ?

     

    And lets not forget GE itself was bailed out by the Feds so we cant complain that the French do this for their large companies
    7 May 2014, 12:09 PM Reply Like
  • elkarlo
    , contributor
    Comments (1639) | Send Message
     
    I am not mad at France for being a liberal country. That is being ignorant. I am mad at the idea of shedding a very good division, to pick up a company of questionable value.
    BTW I currently live abroad, thank you very much
    7 May 2014, 06:40 PM Reply Like
  • Wilcoj
    , contributor
    Comments (54) | Send Message
     
    If GE gives in, I get out.
    7 May 2014, 01:20 PM Reply Like
  • The Retired one
    , contributor
    Comments (185) | Send Message
     
    Wilcoj
    I'm in on this one G.E gives in
    screw the deal, France can go bail themselves out.

     

    7 May 2014, 03:10 PM Reply Like
  • Ervin Seferi
    , contributor
    Comments (8) | Send Message
     
    GE made a generous offer to Alstom from day one. I do not think that GE will bite on this deal unless they see something in the future we do not.

     

    For those of you that do not have faith in this purchase. Recent world politics are pointing at stricter air pollution regulations. In the US alone there is great reform happening. So is the case around the world. Any one that owns the power industry is in a winning position. Also Nuclear is the cleanest energy solution we have to date.

     

    Lets put it to perspective:
    Gasoline and coal ~20-50 Mj/kg
    Uranium ~80 000 000 Mj/kg.

     

    Keep in mind that to get the same energy we have to burn roughly 2-4 million kg of coal or petroleum. Guess where all that waste is going??? to the atmosphere.

     

    Now i understand average Joe does not grasp that Nuclear is safe... (unless you are sitting on a Ridge like say Japan) and it will damage earths environment less then coal and petroleum if regulation is kept.
    7 May 2014, 03:54 PM Reply Like
  • Wilcoj
    , contributor
    Comments (54) | Send Message
     
    Evin, I mostly agree with your nuclear comments. However, I think what we'll see is a reduction in its' use versus an increase. France may be an exception to this. In the US, the primary focus appears to be a switch to nat. gas for power generation. This is much cleaner than coal or oil. Secondarily, there is a push for wind and solar which is as clean as nukes, but requires large land usage for power generation on a large scale and generally is not as cost effective as nat. gas.
    8 May 2014, 10:36 AM Reply Like
  • Ervin Seferi
    , contributor
    Comments (8) | Send Message
     
    Wilcoj I would have to disagree with you on both comments. First no gas is not much cleaner... its about 46 Mj/kg so yes you are still dumping about 2 million tons of CO2 in the atmosphere. There is nothing clean about any burning energy plant that out-gasses to the atmosphere. Our PV solar and wind industry now are requiring so much power to manufacture that we do not see returns in power output until 5-10 years so while they are clean solutions all they do is shift the demand curve to the present and relief slightly on the future demand. also pv solar and wind are sporatic they cannot power a grid for 24 hours/365 days of the year. Concentrated solar may have a chance however it is a slow moving business with initial cost problems now. So we are left with nuclear for a while to come. Also keep in mind that each year electric demand is going up.
    20 May 2014, 02:44 PM Reply Like
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