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GE may improve offer for Alstom, French finance minister says

  • France expects General Electric (GE) to improve its bid for Alstom (ALSMY) due to a joint bid from Siemens (SIEGY) and Mitsubishi (MHVYF) that increases the deals' stakes.
  • "Mitsubishi forming an alliance with Siemens improves Siemens' offer," says French finance minister Michel Sapin. "I think that GE is also going to improve its offer."
  • GE has already offered $16.9B for all of Alstom's energy assets with the promise to create 1,000 new jobs in France within three years. Siemens and Mitsubishi will disclose their bid by tomorrow, although it looks like they will only be offering $12.3B in cash.
  • It remains to be seen what General Electric will add to their bid, as GE Vice Chairman John Rice stated Friday his company will pursue its bid alone.
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Comments (27)
  • duhaus
    , contributor
    Comments (320) | Send Message
     
    "Mitsubishi forming an alliance with Siemens improves Siemens' offer," says French finance minister Michel Sapin. Improves what offer ? From everything I've read This is Siemens initial offer with or without Mitsubishi. "I think that GE is also going to improve its offer." Substitute "wish" for "think" and you might have an accurate statement. I was for this offer initially but with all the theatrics and now these nonsensical statements coming from French govt officials I'm strongly opposed. This statement is so obviously an attempt to manipulate things in the govt.'s favor that I really hope GE stands pat and if the deal goes through then we'll have to see how it goes and if it gets passed over for the Siemens/Mitsubishi bid then take the $1 billion fee and don't look back.
    15 Jun 2014, 12:45 PM Reply Like
  • Jungleer47
    , contributor
    Comments (6) | Send Message
     
    Any deal with the French Government involvement is a bad deal...guaranteeing employment is a non starter...Immelt should run not walk to the first exit! I'll sell my GE stock if he ups the ante...I might sell anyhow if the deal goes thru!
    15 Jun 2014, 02:14 PM Reply Like
  • Nettligent
    , contributor
    Comments (1349) | Send Message
     
    We will sell all our GE shares next week if GE management decides to pursue Alstom further.
    15 Jun 2014, 02:25 PM Reply Like
  • bgold1955
    , contributor
    Comments (2270) | Send Message
     
    At this point, I trust GE will do what is best for GE shareholders.
    15 Jun 2014, 02:50 PM Reply Like
  • Nettligent
    , contributor
    Comments (1349) | Send Message
     
    At this point, we have completely no trust in French government and their impotent leaders will do what is best for Alstom's employees, shareholders, French people and their future.
    15 Jun 2014, 04:12 PM Reply Like
  • riggle99
    , contributor
    Comments (213) | Send Message
     
    GE management should stand on their existing offer, or walk away. I trust that GE Management will do what is best for their stock options and egos, with care about shareholders coming in somewhat further down the list.
    15 Jun 2014, 04:36 PM Reply Like
  • doc47
    , contributor
    Comments (1363) | Send Message
     
    Any "improvement" in GE's offer will be a proportionate loss for its shareholders.
    15 Jun 2014, 01:00 PM Reply Like
  • CCCB
    , contributor
    Comments (57) | Send Message
     
    Guess we going to find out if Immelt a poker player!
    15 Jun 2014, 01:04 PM Reply Like
  • erjcerjc
    , contributor
    Comments (44) | Send Message
     
    He'd probably draw to an inside straight.
    15 Jun 2014, 01:18 PM Reply Like
  • sethmcs
    , contributor
    Comments (3474) | Send Message
     
    A draw to inside straight is only 11 to one. Not out of the realm of possibility but not very smart either.
    15 Jun 2014, 03:52 PM Reply Like
  • 6608281
    , contributor
    Comments (45) | Send Message
     
    How is a $4.6b offer less than GE's bid a comparable offer. As of March 31, GE has over $75b in cash on their books. Mr. Immelt, take the 1,000 job guarantee off the table, offer $14b for the power business, and let the French Government eat crepe suzette.
    15 Jun 2014, 01:54 PM Reply Like
  • Nettligent
    , contributor
    Comments (1349) | Send Message
     
    French government and their leaders are a big jokes. French people got exactly what they voted for. No wonder France is in spiral downward and bleeding to death.
    15 Jun 2014, 02:20 PM Reply Like
  • ernstphall
    , contributor
    Comments (35) | Send Message
     
    Well... Look what we in the US voted for... I add my several-thousands-shares of vote into the let-the-offer-stand category. Doing business with the French government can be no great gift for US shareholders.
    15 Jun 2014, 05:20 PM Reply Like
  • Jcflash
    , contributor
    Comments (39) | Send Message
     
    There comes a point where you have to say it's time to back out. I believe GE it's already over paying for this company, any improvement on the offer will make things worst. Take the money and go shopping somewhere else, who knows if GE backs out they may come back to the table at a better price.
    15 Jun 2014, 01:59 PM Reply Like
  • alphadogone
    , contributor
    Comment (1) | Send Message
     
    The longer this pursuit goes on, the less it feels right or positive. The French government is at the point where they are just yanking GE around because of arrogance. French socialism at its finest.
    15 Jun 2014, 02:13 PM Reply Like
  • Copious28
    , contributor
    Comments (422) | Send Message
     
    The French minister is signalling that he wants to recoup some of that $10B that BNP Parabas has to pay for breaking sanctions with Iran.
    15 Jun 2014, 02:21 PM Reply Like
  • Nettligent
    , contributor
    Comments (1349) | Send Message
     
    Alstom is already in the heat with many bribery waves. GE shareholders are not paying for the sins of BNP Parabas.
    15 Jun 2014, 02:36 PM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (2979) | Send Message
     
    Immelt shld not have guaranteed a win here.
    15 Jun 2014, 02:42 PM Reply Like
  • ReynoldsCC
    , contributor
    Comments (72) | Send Message
     
    I took my GE profits by selling ~$27.50 last week. I've lost confidence in Immelt's leadership. Will maybe buy back in when he is gone, if the stock price is lower as I expect..... Good luck all.
    15 Jun 2014, 03:10 PM Reply Like
  • Nettligent
    , contributor
    Comments (1349) | Send Message
     
    Reynolds, I strongly believe in GE management but will follow your wise execution. French government is too painful to bear, even after the merger succeeds. GE keeps looking over its shoulder and bend backward for French government and impotent leaders.
    I hope we can work out so GE and American corporations can bring some of their cashes to invest back in America.
    15 Jun 2014, 04:07 PM Reply Like
  • ReynoldsCC
    , contributor
    Comments (72) | Send Message
     
    Yes, just when and how would US shareholders benefit from this expansion if it happens?

     

    Supposedly Immelt must invest some $15B cash however ill-conceived rather than pay any to the US Treasury through repatriation taxes. To neet some dream of greatness? Even if profits were to be made they'd still have to stay overseas by that philosophy.

     

    Bite the bullet, pay your share of taxes, and bring the cash home.

     

    Be patriotic, GE. Invest in America!
    15 Jun 2014, 08:01 PM Reply Like
  • Nettligent
    , contributor
    Comments (1349) | Send Message
     
    Britain's Serious Fraud Office (SFO) is pursuing its investigation of alleged corruption at Alstom as a major transatlantic takeover battle for the French engineering conglomerate reaches a climax. Britain's Attorney General - the government's chief legal adviser - has given permission for the SFO to prosecute the company and former employees for alleged overseas bribery. The SFO has notified seven individuals that they are under investigation.
    According to court filings, the Justice Department has evidence that a former Alstom executive tried to bribe officials to secure power projects in Indonesia, India and China.
    Two executives of Alstom's U.S. subsidiary in Connecticut have already pleaded guilty and admitted to paying bribes on behalf of the company in connection with a project on the Indonesian island of Sumatra.
    Alstom is also co-operating with the U.S. Justice Department over allegations of bribery in Asia. The long-running investigation could result in penalties of several hundred millions of dollars.
    15 Jun 2014, 03:22 PM Reply Like
  • Nettligent
    , contributor
    Comments (1349) | Send Message
     
    Apple and Siemens are better investment than GE in 2014.
    Disclosure: we will sell GE, buy Apple first. If GE offers "improvements" to Alstom, sell the rest of GE shares to buy Siemens.
    15 Jun 2014, 03:45 PM Reply Like
  • rrr999
    , contributor
    Comments (9) | Send Message
     
    I hope that GE stands pat with their current bid. They should let it expire and perhaps wait for an opportunity to come back in at a lower (much lower) price.

     

    Also not comforting to hear about possible problems/issues at Alstom. The longer this continues the shakier it gets.

     

    Further, the guaranteed jobs are very disconcerting. If GE or any other American Corp. is interested in creating jobs, how about creating them in the U.S. ?
    15 Jun 2014, 03:55 PM Reply Like
  • WPSPIKER
    , contributor
    Comments (1158) | Send Message
     
    Great replies so far and I agree with those that say SELL (GE) if they increase their bid or say they will add 100 or more jobs there. France workers are similar to other GE employees though with Union Mentality that they deserve the best pay for mediocre work at best.

     

    I'm a FORMER employee of (GE) as such I lost my job because I worked HARD & Management preferred to have more employees with lack luster work ethic over the hard workers who did their jobs. The wanted employees to chat enjoy and play around vs Working hard to get the job done quick & right. Their believes were "we always did it this way and we are right" never mind what NEC or Local Codes are, Trained people know vs Old Employees w Union mentality... These guys still switching neutral wires inside plant & running same equipment which was NEW in 80's... Scrounging Ebay and NOS shelves for 80's equipment to keep it going in stead of upgrading & doing it right.

     

    M
    15 Jun 2014, 05:31 PM Reply Like
  • Siwanoy
    , contributor
    Comments (717) | Send Message
     
    Frankly, the French government is looking very foolish. Immelt's biggest worry is not Siemens but going out of his way to not embarrass the Government when he wins the bid --unless he is disgusted with this latest preannouncement ploy, doesn't trust them and wants out. I would be tempted to walk I have to admit. I just don't like the government involvement at this level at all.
    15 Jun 2014, 09:03 PM Reply Like
  • reurk
    , contributor
    Comments (42) | Send Message
     
    There are so many pros and cons to this deal - who really knows what the future holds,but, my past business dealings with the French have taught me to run.
    I will be selling all my GE stock today and see what is down the road.
    16 Jun 2014, 01:00 PM Reply Like
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