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WSJ: GE considers selling train signal business to Alstom

  • 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.
Comments (8)
  • db313706
    , contributor
    Comments (213) | Send Message
     
    I'll admit when something is beyond my pay grade...

     

    I gather as much that they're trying to create a mutually beneficial situation for all parties involved, but can someone on SA explain whether or not this is the equivalent of GE overpaying for their bid?
    17 Jun 2014, 03:29 PM Reply Like
  • Jdeboer87
    , contributor
    Comments (282) | Send Message
     
    I don't think this changes the economics of the deal accept once its completed GE will own Alstom and Alstom will own GEs signalling business. Still all owned by GE but Alsom will have direct ownership of this business and likely all management responsibilities (which probably would have happened anyway accept now they will have direct legal ownership).
    17 Jun 2014, 03:57 PM Reply Like
  • Felix Lumpe
    , contributor
    Comments (544) | Send Message
     
    By the time this negotiation is complete, GE will be a French company. 1000 new jobs in France? Wine tasters? Pick pockets?
    17 Jun 2014, 05:36 PM Reply Like
  • The Average Investor
    , contributor
    Comments (102) | Send Message
     
    During all these negotiations going back and forth for the last month, has anyone from GE discussed how they plan to increase their share price back to 1995 $65 levels?
    17 Jun 2014, 06:16 PM Reply Like
  • elkarlo
    , contributor
    Comments (430) | Send Message
     
    Seriously? GE DO NOT SELL the RR div, are you daft?

     

    This is no longer about Alstom being a good purchase, this is about not losing the bid.
    17 Jun 2014, 06:31 PM Reply Like
  • The Retired one
    , contributor
    Comments (184) | Send Message
     
    Jeffrey it's time just get up close your attaché case & say gentleman have a good day my offer stands but not forever you know my number.
    17 Jun 2014, 07:33 PM Reply Like
  • tribefan
    , contributor
    Comments (5) | Send Message
     
    I said it before, GE should walk and not look back.
    17 Jun 2014, 09:06 PM Reply Like
  • arab45
    , contributor
    Comments (26) | Send Message
     
    Immelt keeps promising and sweetening his offers......if this continues, GE will be owned by the French...time for the GE board to pull the plug on this CEO.
    17 Jun 2014, 09:06 PM Reply Like
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