Immelt says GE is open to an alliance with France


GE is willing to partner with France's government in a possible alliance, CEO Jeffrey Immelt told French lawmakers today, as he tried to win their support for GE's bid for Alstom's (ALSMY) power equipment business.

Immelt didn't offer specifics, but GE hadn't previously stated a willingness to a government investment in a business resulting from any acquisition of Alstom's assets.

A GE spokesman says the company is not offering the French government a stake in the steam turbine business; French Economy Minister Montebourg is worried that a GE deal could disrupt the supply of Alstom turbines to Electricit├ę de France (ECIFF), which uses them to make France's world-class nuclear reactors.

Immelt said today GE understands the "importance of the sovereignty of the nuclear industry" in France, adding that GE had been working with EDF for decades.

Siemens' (SIEGY) Christophe de Maistre told the lawmakers today that his company's eventual bid would spawn two separate companies: a power equipment firm and a train giant that would combine Alstom's high-speed train operations with Siemens' rolling-stock business.

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Comments (14)
  • Nettligent
    , contributor
    Comments (1346) | Send Message
     
    We begin to understand and learn so much the reasons many French companies fail spectacularly during the past 10 years: their own government and leadership.
    27 May 2014, 08:36 PM Reply Like
  • Nettligent
    , contributor
    Comments (1346) | Send Message
     
    We love GE Alstom and everything Alstom. We will not invest in "Made in France" again unless French people change their government and leaders.
    28 May 2014, 02:31 AM Reply Like
  • zbignue
    , contributor
    Comments (540) | Send Message
     
    Another example of why governments should limit their involvement in peoples lives to governing and not to industry. Is there anything in the realm of industrialization that government can do more efficiently than private industry ?
    27 May 2014, 08:56 PM Reply Like
  • Marcelobozo
    , contributor
    Comments (21) | Send Message
     
    GE is carefully maneuvering around the french government and the losses that socialists suffered this past weekend will help GE's effort. Now more than ever the socialists need the business backing and Alstom's board may finally push the government out of the way and bring this charade to its conclusion in favor of GE
    27 May 2014, 09:05 PM Reply Like
  • duhaus
    , contributor
    Comments (320) | Send Message
     
    I was all for this deal when it was first announced, then things started to get a little iffy, now it's just downright silly. An "alliance" with the French govt ?!? Umm no.
    28 May 2014, 12:12 AM Reply Like
  • Matthew Brown
    , contributor
    Comments (1062) | Send Message
     
    Yes, exactly. This is beyond iffy now, it's bordering on insane. It's making this otherwise happy GE shareholder question my investment.
    28 May 2014, 12:17 AM Reply Like
  • King Rat
    , contributor
    Comments (1845) | Send Message
     
    "This is beyond iffy now..."
    Understatement of the year. Thanks to the socialist grip on France loosening up, GE can now align itself with... wait wouldn't that just be socialism by any other name? Oh yeah, right.

     

    GE making a deal with the French government is like "The Fox and The Stork", only I can't know which one is which.
    28 May 2014, 03:20 AM Reply Like
  • SoCalNative+(RIP)
    , contributor
    Comments (651) | Send Message
     
    Wow. ALL great comments. This is how it should be. Thank you all so far.
    28 May 2014, 12:32 AM Reply Like
  • Felix Lumpe
    , contributor
    Comments (773) | Send Message
     
    This situation gets more bizaar on a daily basis. Partnering with the French government? I cannot wait to hear the details.
    28 May 2014, 12:47 AM Reply Like
  • bberuch
    , contributor
    Comments (314) | Send Message
     
    Jeffey get out while you still can.
    28 May 2014, 06:15 AM Reply Like
  • T Wiz
    , contributor
    Comments (36) | Send Message
     
    GE should take a page from Pfizer to know when to leave from a bad deal.
    28 May 2014, 06:03 PM Reply Like
  • JackLupei
    , contributor
    Comments (71) | Send Message
     
    This is a smart move by Immelt. The offer implies GE respects the French government to the extent they would consider a partnership. On the other hand, I suspect the French politicians are loath to throw more money at Alstom; thus, it takes the edge off their noisy nationalistic demands. Score one for Immelt.
    29 May 2014, 10:40 AM Reply Like
  • duhaus
    , contributor
    Comments (320) | Send Message
     
    Very good point to consider Jack, thanks.
    29 May 2014, 01:33 PM Reply Like
  • Joe Fiorito
    , contributor
    Comment (1) | Send Message
     
    Immelt is tacking thru choppy waters dealing with a stubborn closed minded Frenchman Montebourg and he knew that going into this arena. I believe he knew how much he would have to give up to get the deal done. So far he is doing real well. He is also smart enough to carry out what he is bargaining for; in order to build back the trust in American Business in the Euro economy.
    29 May 2014, 09:11 PM Reply Like
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