WSJ: GE considers selling train signal business to Alstom

|By:, SA News Editor

GE (GE +0.1%) is considering selling its train signaling business to Alstom (ALSMY), as it seeks ways to improve the appeal of its $17B offer for the French company's energy business, WSJ reports.

A direct sale would send GE beyond its initial proposal outlined last month by CEO Jeffrey Immelt during a parliamentary hearing in France to consider pooling its signaling operations with Alstom's into a joint venture.

GE may propose to Alstom that it choose between a direct purchase and a joint venture, which would allow the maker of France's TGV bullet trains to decide whether it would rather conserve cash for other acquisitions or spend a chunk of it on buying GE's signaling unit.