Alstom's board accepts GE bid


After receiving the French government's blessing on Friday, General Electric's (GE) improved bid has been officially accepted by Alstom's (ALSMY) board. The approval marks an end to the bidding war between GE and Siemens (SIEGY)-Mitsubishi (MHVYF).

The closing of the deal is still contingent upon the French government finding an agreement with Bouygues (BOUYF). The former wishes to buy a 20% stake in Alstom before allowing GE to buy the group. After the French state purchases its 20% stake, Alstom will be left as a holding company, paving the way for three 50-50 joint ventures with GE.

Once the deal is closed, Alstom will then buy GE's train signalling business.

The approved offer still values the power equipment company at $17B, but prices the Alstom investment in the joint-ventures at $3.4B.

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Comments (10)
  • limed
    , contributor
    Comments (74) | Send Message
     
    Finally! Can be nothing but good for GE. There was NO WAY they could let their biggest competitor (Siemens) buy Alstom.
    22 Jun 2014, 11:12 AM Reply Like
  • BHT
    , contributor
    Comments (36) | Send Message
     
    One more step closer to becoming a euro country has been.What a shame. This country used to be special,not any more.
    22 Jun 2014, 11:48 AM Reply Like
  • NCaviator
    , contributor
    Comments (2) | Send Message
     
    Finally, GE stuck it out and let the Siemens offer degenerate into complexity and vague arm waving. GE know how to do these 50/50 JVs, their teaming with France's Snecma to design and produce the CFM aircraft engine results in CFM having the largest installed base of jet engines in the world.
    22 Jun 2014, 12:20 PM Reply Like
  • kaysera
    , contributor
    Comments (9) | Send Message
     
    It appears Germany looks East, while UK, France look West. Europe East, mongrels West.
    22 Jun 2014, 12:21 PM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (3748) | Send Message
     
    Just keep raising the divvie, Jeffery.
    22 Jun 2014, 06:26 PM Reply Like
  • The SmallGuy
    , contributor
    Comments (3) | Send Message
     
    GE has been "had" with the French government controlling Alstom.
    22 Jun 2014, 09:20 PM Reply Like
  • limed
    , contributor
    Comments (74) | Send Message
     
    To BHT. Wake up. The world became a global market in the 1980's ! If you don't compete globally, you lose. Just ask Jack Welch for whom I worked.
    23 Jun 2014, 08:21 AM Reply Like
  • BHT
    , contributor
    Comments (36) | Send Message
     
    To limed. So you work for the Frenchie Immelt today. You people have to learn there is a difference between investing and giving away the store.Typical euro think wouldn't know the difference.
    24 Jun 2014, 09:55 AM Reply Like
  • limed
    , contributor
    Comments (74) | Send Message
     
    Really?
    25 Jun 2014, 08:48 AM Reply Like
  • limed
    , contributor
    Comments (74) | Send Message
     
    To BHT. I don't work for Immelt, I am retired with 2 great pensions from GE and stock and options. I don't think he "gave away the store" when GE has over $88 Billion in cash. The tax consequences of investing 10-15 billion in Europe is far less than in the USA!
    25 Jun 2014, 08:55 AM Reply Like
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