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GE exec heads to Paris to save Alstom deal

  • GE is sending a top executive to Paris today as it works to save its deal to buy Alstom's (ALSMY) energy business.
  • GE has some cards to play: CEO Jeff Immelt has offered to consider taking on French investors in Alstom's hydropower unit, to sell Alstom's wind-power unit to French investors and to explore a JV involving Alstom and GE's railroad signaling businesses.
  • But the hard-to-please French Economy Minister Arnaud Montebourg is backed by a new French decree allowing the government to veto foreign investment in energy, water, transport and other sectors deemed strategic to the country, which may yet put more pressure on GE to modify its deal.
  • GE is still Alstom's only formal suitor, though Siemens (SI) is studying Alstom's books in preparation for a possible bid, and Montebourg has made clear he would favor a European option.
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Comments (15)
  • SeattleGoldMiner
    , contributor
    Comments (1012) | Send Message
     
    France will go the way of NY and CA, driving out the economic base that they wish to derive their tax revenue from, as well as the top executives who also contribute heavily to the tax base.
    16 May 2014, 08:25 AM Reply Like
  • fingel
    , contributor
    Comments (95) | Send Message
     
    Here in San Francisco, there are so many new highrises going up south of Market, it is hard to see how the economic base is being driven out. If anything, it looks like economic growth to my untrained eye.
    I don't live, nor have I ever actually been to NY so can't really comment on what the situation there.
    16 May 2014, 10:40 AM Reply Like
  • BHT
    , contributor
    Comments (36) | Send Message
     
    GE walk away. you can get a better deal later, when they come begging to take this away.
    16 May 2014, 08:29 AM Reply Like
  • ernstphall
    , contributor
    Comments (33) | Send Message
     
    It seems like it will be terribly easy for GE to get painfully embroiled in French politics and end up losing profits. There is surely a good reason Alstom is failing; Ge could end up failing here also. Bad deal; let them rot!
    16 May 2014, 08:45 AM Reply Like
  • edhaven
    , contributor
    Comments (64) | Send Message
     
    l'm not convinced that this is a good deal for GE. Alstom is a failing company.
    Wait a bit longer and let France bail them out first then look for a firesale.
    16 May 2014, 09:09 AM Reply Like
  • piano man
    , contributor
    Comments (68) | Send Message
     
    France hasn't changed since World War Two, I guess Mountenbourg wants Germany back again
    16 May 2014, 09:36 AM Reply Like
  • starcorral
    , contributor
    Comments (828) | Send Message
     
    The French Government can screw up a a one cubic foot concrete block. The deal appears to be a winner based on what GE COULD DO, but the French Government needs drama and has an ego that bruises like a dying hemophyliac. I am GE long, but who in their right mind would go to all the trouble to work out a perfect plan only to have a socialist decree to screw up local labor policy and international contract regulations.

     

    I think the Alstom deal [not Alstom itself] might become another debacle. The last good thing France did for us was the Statue of Liberty; and that monument represents a principle France rejects in favor of controling every aspect of life and business.
    16 May 2014, 11:01 AM Reply Like
  • Nettligent
    , contributor
    Comments (1350) | Send Message
     
    After all the drama with French government, we all believe that Alstom is nothing but problems.
    GE management probably see something we don't. I wish we were all Wrongs and GE management is right.
    16 May 2014, 01:04 PM Reply Like
  • ReynoldsCC
    , contributor
    Comments (70) | Send Message
     
    My experiences with France and the French lead me to believe GE should stay away from any deal here. Sell your products to these guys hands off through some distributor (and get cash in advance).
    If the deal goes through at all, I think it may be time to sell my GE shares.....
    16 May 2014, 02:28 PM Reply Like
  • Edgar3332
    , contributor
    Comments (15) | Send Message
     
    Time for GE to pick up its chips and come home. Surely there will be other acquisition opportunities available in more investment friendly environments than France. Can'i understand why Immelt is so intent on pursuing expansion into a country that is so hostile to free markets and private enterprise. Where is GE's board on this or is it merely continuing to be Immelt's echo chamber?
    16 May 2014, 02:42 PM Reply Like
  • reurk
    , contributor
    Comments (42) | Send Message
     
    Talk - Talk - Talk. ---- So many of us do not want the France deal to go through. Therefore, do not just internet about it, do as I am doing and write your e-mail directly to GE. Put the pressure where it needs to be.
    16 May 2014, 03:48 PM Reply Like
  • DSilver52
    , contributor
    Comments (2) | Send Message
     
    I agree with most, walk away. The french helped us with the revolution and the USA helped with WWI and WWII. GE should just wait and see what happens and stop prostituting themselves. Let the Germans have them, the French government is likeable only because they make our government look good.
    16 May 2014, 03:59 PM Reply Like
  • abocchet
    , contributor
    Comments (2) | Send Message
     
    French government is only playing the game to get more on this negotiation. Holland comes from a low consensus across French electors and European elections are coming. In my view this move from French goverment could be expectable. The deal will go on.
    16 May 2014, 05:51 PM Reply Like
  • Nettligent
    , contributor
    Comments (1350) | Send Message
     
    Story keeps changing every other day from France. Do not get any further with French government and we will end up hurting ourselves. If Siemens is a better fit for Alstom, be it as it may.
    Wait until France has a new government, we can come back to work thing out. So far it is a bad warning signs and we do not want to leave bad tastes.
    The global market is weaken and kind of dangerous for the rest of 2014. Time to bring these money to re-invest back to America, drive innovation, and prepare for future.
    16 May 2014, 07:29 PM Reply Like
  • RWMostow
    , contributor
    Comments (1555) | Send Message
     
    Nettigent-

     

    How to bring money back to America without the IRS taking approx. 40%?

     

    -rwm
    16 May 2014, 11:09 PM Reply Like
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