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


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.

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Comments (12)
  • cdjagds
    , contributor
    Comments (19) | Send Message
     
    so much arrogance!
    21 May 2014, 02:49 PM Reply Like
  • Lineman75
    , contributor
    Comments (11) | Send Message
     
    As they say pride comes before a fall and we are the ones funding his Exec pay and all the perks he has. Lets not forget about the perks he will no doubt retain after he leaves our company.

     

    Another agreement not to work for a competitor at the cost to us of several million dollars ?
    21 May 2014, 03:14 PM Reply Like
  • Hlog160
    , contributor
    Comments (14) | Send Message
     
    Run away from France as fast as you can. Guess we never should have rescued it during WWII.
    21 May 2014, 03:19 PM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (4202) | Send Message
     
    Time to walk the walk then, Jeff.
    21 May 2014, 03:23 PM Reply Like
  • dsw0115
    , contributor
    Comments (56) | Send Message
     
    He better hope he's not eating those words later....
    21 May 2014, 03:41 PM Reply Like
  • Texconsin
    , contributor
    Comments (16) | Send Message
     
    So, Jeffrey, the fix is in? (Or, as they say, "money doesn't talk...it SCREAMS!")
    21 May 2014, 03:55 PM Reply Like
  • doc47
    , contributor
    Comments (1671) | Send Message
     
    This from the guy who was "confident" GE would not cut its dividend in 2008!
    21 May 2014, 04:03 PM Reply Like
  • Gnart
    , contributor
    Comments (39) | Send Message
     
    "But Nomura's Shannon O'Callaghan thinks GE might be better off walking away"

     

    I agree. The Alstom deal is problematic from the start. The company is not doing well. The French government put their fingers in the pot to stir it up... GE should walk. Leave Alstom's problems to the French government. Bureaucrats have no business getting into business... double-trouble here...
    21 May 2014, 04:13 PM Reply Like
  • Veritas1010
    , contributor
    Comments (3075) | Send Message
     
    This is a fool's errant. And GE has sent its best ambassador to assuage the masses that all is well.

     

    Just dump Immelt - along with socialist France.
    21 May 2014, 04:27 PM Reply Like
  • duhaus
    , contributor
    Comments (320) | Send Message
     
    I agree this deal appears to be fraught with trouble and GE should let it die and collect their fee but the "socialist" buzzword doesn't fit here. The French govt. which from my understanding is a part owner in Alstom, is trying every maneuver in the book to sweeten the deal for themselves, sounds like a chapter straight out of "capitalism 101". If you think a govt. getting involved in big business is purely a socialist trait then you're being delusional.
    21 May 2014, 04:55 PM Reply Like
  • Al Boling
    , contributor
    Comments (21) | Send Message
     
    I agree w/hilog160-- being a ww2 Vet if it had not been for us there wd not be a France!!! Jeff tell them to shove it..
    21 May 2014, 06:32 PM Reply Like
  • jakewood
    , contributor
    Comments (2) | Send Message
     
    Bad move to go forward. Selling my shares. Have dealt with the French in numerous ways in the past , had more success where trust in future dealings with the in dealing with Russians than the French. I will sell GE stock and stand aside and see what transpires.
    21 May 2014, 06:40 PM Reply Like
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