Reuters: Siemens, Mitsubishi finalize Alstom offer


Siemens (SIEGY) and Mitsubishi (MHVYF) reportedly are putting the finishing touches on a joint offer for Alstom's (ALSMY) turbine businesses that includes ~€9B cash.

GE has offered €12.35B ($16.9B) for all of Alstom's energy assets, including turbines, renewables and grid operations, but a source tells Reuters "the offer can't be compared with that of GE as they're so different in nature."

Under the complex proposal, Alstom would have a future in the energy business and be at the center of a European rail champion - both potentially attractive prospects for the French government - but would turn Alstom into an unwieldy holding company with stakes in disparate businesses, which may make it difficult to convince Paris that its deal is a jobs creator.

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Comments (3)
  • Snapcap
    , contributor
    Comments (191) | Send Message
     
    The K.I.S.S principle is best. Keep it simple and short. Alstom would be wise to accept GE's offer, if the government will just get out of the way.
    13 Jun 2014, 01:34 PM Reply Like
  • starcorral
    , contributor
    Comments (1716) | Send Message
     
    France is all about bad decisions and passing blame. This deal is not one where you walk up to the hole in the window and say "1 please"; it is a deal in which aprivate entities will be engaged with a socialist government which is always short on cash. France does not seek a business associate; it seeks a cow. You can rest assured that any deal with entities other than GE will be based more on "understandings" and less on written contracts. If anyone ever has to pull a parachute, the Germans and Japanese will be left dangling.

     

    If they are smart enough to figure it out, GE will likely take advantage of the advertised final date of their offer and hopefully walk away with a titanium chain mail chastity belt.
    13 Jun 2014, 07:41 PM Reply Like
  • yakkay811
    , contributor
    Comments (7) | Send Message
     
    If the deal is inked, I'm selling my shares of GE. Don't trust the French or socialist government. I really don't think the CEO of GE has ever done well for the stockholders. It's been dead money in my portfolio for 20 years. I only keep the stock because I worked in their capacitor plant, while in junior college. I think the stock goes to the dogs when and if they buy .
    14 Jun 2014, 12:37 AM Reply Like
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