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Bloomberg: GE seeks ways to woo French government over Alstom

  • General Electric (GE) is in talks with nuclear-plant manufacturer Areva (ARVCF) and other French companies about asset sales or partnerships as the U.S. conglomerate looks to persuade France's government to support its bid for Alstom's (ALSMY) energy operations, Bloomberg reports.
  • Meanwhile, Siemens (SI) could formally make a rival offer this week in which it would swap its rail business for Alstom's power assets, Reuters reports. The companies would also create a JV in rail signalling, while Siemens could offer to divest Alstom's wind and nuclear-power interests to Areva.
  • However, Alstom wants cash and supports GE's bid, and although it is interested in strengthening its presence in rail signaling, it doesn't want to add to its rolling stock.
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Comments (6)
  • vman
    , contributor
    Comments (152) | Send Message
     
    Doesn't look like a shoe-in... Looks like the price is about to go up... big time.
    19 May, 07:19 AM Reply Like
  • cjay18
    , contributor
    Comments (227) | Send Message
     
    In the absence of a firm bid by a would-be buyer, GE has to walk a tightrope of trying to persuade the government to support its bid while not competing against itself by raising its bid by a material amount. Of course, from what we have seen in publicly reported news, there is only one government official who seems to favor a bid from their old friend, Siemens, the powerhouse manufacturer in the Nazi era. And yet, Siemens does not seem that enthusiastic to make a bid-some of you may recall that Siemens is just now getting over a very recent and very dark period in their history of foreign bribery to obtain or retain business that cost them billions in legal fees and criminal fines and perhaps as a result is reluctant to devote resources in France. As a GE shareholder, I hope this works out well for GE. As for France, well, que sera sera. As for Siemens,...........
    19 May, 08:21 AM Reply Like
  • hasapiko
    , contributor
    Comments (31) | Send Message
     
    GE has to do something with its X billion dollars of unrepatriated profits.
    19 May, 09:02 AM Reply Like
  • Veritas1010
    , contributor
    Comments (1574) | Send Message
     
    GE is between a rock and a hard place. The French will undoubtedly do their best to squeeze capital out of GE. GE must resist the temptation to bid against itself, and importantly know when to walk away.

     

    Besides, the break-up fee makes walking away a viable alternative right?
    19 May, 09:44 AM Reply Like
  • Marcelobozo
    , contributor
    Comments (19) | Send Message
     
    The French government brought Siemens to this party to spruce GE's bid. The French are fully aware that Siemens is not in a position to offer a comparable GE bid. Siemens does not gain any commercial and technical advantage by acquiring Alstom, they are in this charade as the french government's PR to show a competitive bidding process and squeeze GE of further concessions. Time is on the side of GE and rushing to complete this deal will only help the government. GE just needs to show interest, continue the conversation, and wait. Eventually Alstom workers and shareholders will force a resolution in favor of GE for economic reasons, just as Minister Goyal suggested a couple of weeks ago.
    19 May, 01:16 PM Reply Like
  • asab
    , contributor
    Comments (4) | Send Message
     
    GE needs to say. " final offer" take it or leave it?France has done very well through GE Avaition.GE has proven their credibility. SHOW CLOSED
    22 May, 04:27 PM Reply Like
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