GE's Immelt says he's confident about sealing the deal for Alstom

|By:, SA News Editor

GE's (GE +0.4%) Jeff Immelt sounds confident about completing the company's proposed deal for Alstom's (ALSMY) energy assets despite the resistance of the French government, saying "we know what we're doing" and "we wouldn't have started if we didn't think we could finish."

But Nomura's Shannon O'Callaghan thinks GE might be better off walking away: The original case for a deal was that Alstom’s cash squeeze created an opportunity for GE to buy core power assets that helped it offer a total plant solution and achieve its targeted industrial/finance earnings mix at a price that made the deal justifiable on cost synergies, but raising the offer price erodes the cost synergy case, while putting existing GE industrial assets into the deal erodes the industrial/finance earnings mix case.

Also, Immelt says GE expects to launch the IPO of its North American retail finance business in Q3, a key step in his efforts to shrink the size of GE's finance operation.