Siemens makes its counteroffer for Alstom gas turbine assets, GE -1%


Siemens (SIEGY +0.4%) officially bids to buy Alstom's gas turbine business, part of a broader deal that also involves Mitsubishi Heavy Industries and Hitachi, and potentially spoiling GE's (GE -1%) $17B bid for all of Alstom's(ALSMY -0.5%) energy business

Confirming preliminary reports, Siemens says it has offered Alstom ~€3.9B ($5.3B) for its gas turbine business and related service contracts, and proposed establishing joint ventures in other sectors and transfer of its rail business to Alstom as elements of the bid.

"Our offer preserves the brand Alstom in substantial parts and altogether it's about €1B better financially [than GE's bid]," Siemens CEO Joe Kaeser says.

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Comments (16)
  • arab45
    , contributor
    Comments (27) | Send Message
     
    Time for GE to walk away from this deal
    16 Jun 2014, 12:08 PM Reply Like
  • A Newell
    , contributor
    Comments (508) | Send Message
     
    I agree...this will not be an easy fit for any company and GE may make out better by picking up the pieces of the floundering mess that follows.
    16 Jun 2014, 12:19 PM Reply Like
  • countryplaywright
    , contributor
    Comments (32) | Send Message
     
    The GE deal is so much better for Alstom. The Siemens deal is too complicated, and they are overvaluing their Siemens money losing train unit. Introducing Mitsubishsi only complicates matters worse as they intend to split the steam turbines away from the energy unit creating a money losing result for Alstom. The GE deal lets Alstom stand tall with a bundle of cash in their pockets that they can uses to upgrade the rest of Alstom's pieces.
    16 Jun 2014, 12:22 PM Reply Like
  • The Average Investor
    , contributor
    Comments (102) | Send Message
     
    Agree with A Newell (and the 1,000's of others). Walk away. Regroup. Lick wounds. Look elsewhere or come back in a year and pick-up the remaining Alstom-Siemens-Hitachi... "demolishment" at bargain-basement prices. Heck, even Paris may invite GE back later after Alstom looks like a "gutted tuna" a few years from now.
    16 Jun 2014, 12:34 PM Reply Like
  • Hlog160
    , contributor
    Comments (14) | Send Message
     
    Take the cancellation fee and run. GE has spent too much already in trying to satisfy all the French. Looks like a good deal to leave a soon as possible.
    16 Jun 2014, 12:35 PM Reply Like
  • bberuch
    , contributor
    Comments (314) | Send Message
     
    Jeffery you are investing a lot of time and effort on this ping pong game.
    16 Jun 2014, 12:48 PM Reply Like
  • richard costello
    , contributor
    Comments (18) | Send Message
     
    Let it go GE, there's plenty more fish in the ocean to fry..
    16 Jun 2014, 01:02 PM Reply Like
  • U2A Ventures
    , contributor
    Comments (308) | Send Message
     
    GE deal is simpler and better, but if Alstom isnt going to take it, then GE needs to walk away, collect the fee and smile to the bank
    16 Jun 2014, 01:19 PM Reply Like
  • JackLupei
    , contributor
    Comments (69) | Send Message
     
    I don't know how you GE shorts read this Siemens offer but I see it as "half-fast".

     

    The press had me believing that "the offer" was going to be a coordinated single bid from Siemens and Mitsubishi.

     

    Instead it seems we are looking at a garage sale. Alstom lays it assets on the table and the neighbors come by and "cherry pick" only what they want or can afford.

     

    When must Mitsubishi make a formal bid?

     

    Alstom must respond to GE's bid by 6/23.
    16 Jun 2014, 01:44 PM Reply Like
  • CaptainDK
    , contributor
    Comments (31) | Send Message
     
    Walk away with the cash.
    16 Jun 2014, 02:00 PM Reply Like
  • captiva
    , contributor
    Comments (17) | Send Message
     
    TAKE THE MONEY AND RUN !!
    16 Jun 2014, 03:13 PM Reply Like
  • Felix K. Lumpe
    , contributor
    Comments (8) | Send Message
     
    Enough is enough. Time to throw the cards on the table and walk away. Another counter offer by GE would surely be followed by yet another by Siemens. Of course this is exactly what the French have been hoping for. There is much more involved here than one CEO's ego. Collect the nice little fee and move on to another deal which would not involve the French socialists and all of the stipulations that they have attached which were collectively risky and would have diluted any real business value. I think 95% of GE shareholders must feel this way. It will be interesting to see if shareholder opinion has any bearing on what actually happens. If this deal goes through now, I will divest my GE holdings (about 45,000 shares).
    16 Jun 2014, 06:22 PM Reply Like
  • elkarlo
    , contributor
    Comments (1639) | Send Message
     
    Why don't MHI and Hitachi go for the train unit? Alstrom is the world's biggest locomotive and rolling stock mnfger. It seems as though it would benefit them the most.
    16 Jun 2014, 06:33 PM Reply Like
  • LONGTERM RICHARD
    , contributor
    Comments (49) | Send Message
     
    GE should not add more to the current offer and would probably be better off if Siemens gets it considering the obstacles and acrimony thrown up by a socialist French Gov't who considers themselves " partners " in the deal.
    16 Jun 2014, 06:58 PM Reply Like
  • LONGTERM RICHARD
    , contributor
    Comments (49) | Send Message
     
    GE should not add more to the current offer and would probably be better off if Siemens gets it considering the obstacles and acrimony thrown up by a socialist French Gov't who considers themselves " partners " in the deal.
    16 Jun 2014, 06:58 PM Reply Like
  • edheynoski
    , contributor
    Comment (1) | Send Message
     
    I totally agree. Our company should not get into a partnership with a troubled socialist government
    16 Jun 2014, 08:51 PM Reply Like
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