SA News • Mon, Sep. 29
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Siemens/Alstom And The Japanese Connection
- Siemens has taken a smart move in bringing in Mitsubishi and potentially other partners.
- Chances of Siemen's offer getting accepted unchanged.
- Whatever the outcome, Siemens will come out stronger.
Can Alstom Push Paris To Approve The General Electric Acquisition?
- General Electric submitted a $17 billion offer for Alstom's energy business.
- The French government tries to influence the deal by issuing an anti-takeover decree.
- Alstom could be instrumental in pushing for takeover approval.
- Will Siemens launch a competing bid?
Alstom Gets into Tidal Power with Clean Current PowerGreentech Media • May. 26, 2009
Alstom SA FQ410 Earnings Call TranscriptMay. 9, 2010
Yesterday, 6:34 AM
- Alstom (OTCPK:ALSMY) has confirmed it is in talks to settle a bribery case with the U.S. Department of Justice, wrapping up a criminal investigation of its business in Indonesia and other countries before its sale to GE.
- The $700M fine would be the largest criminal penalty paid to the DOJ under the Foreign Corrupt Practices Act.
- Previously: Alstom nears record $700M bribe settlement with DoJ (Dec. 16 2014)
Tue, Dec. 16, 11:22 AM
- Alstom (OTCPK:ALSMY, OTCPK:AOMFF) is close to settling a bribery case with the U.S. Justice Department for $700M, according to multiple reports.
- A settlement of that size would be the largest-ever settlement between a corporation and the Justice Department related to foreign bribery.
- The settlement removes a cloud over the company before its planned sale to GE.
Mon, Sep. 29, 11:20 AM
- Flowserve (FLS -1.1%) has received a $30M contract from Alstom (OTCPK:ALSMY) to provide multiple pumping systems for two units of Alstom’s new Opole, Poland-based power plant.
- The comprehensive pumping systems will be utilized for both steam generation and for condensation.
- Flowserve will record the order in its Q2 2014 bookings.
Thu, May. 29, 10:42 AM
- Siemens (SIEGY +0.1%) does not feel threatened by General Electric's (GE) latest offer for Alstom (AOMFF). In fact, it feels comfortable with the way the Alstom bidding process is proceeding.
- "So far we've had everything we want, we wanted to have a look at it, which we got," says Siemens CEO Joe Kaeser.
- French worries regarding GE's bid seems to have cooled off on Tuesday, after GE promised to create 1,000 industrial jobs within three years and spoke of a possible French alliance.
Mon, May. 19, 4:25 AM
- General Electric (GE) is in talks with nuclear-plant manufacturer Areva (ARVCF) and other French companies about asset sales or partnerships as the U.S. conglomerate looks to persuade France's government to support its bid for Alstom's (ALSMY) energy operations, Bloomberg reports.
- Meanwhile, Siemens (SI) could formally make a rival offer this week in which it would swap its rail business for Alstom's power assets, Reuters reports. The companies would also create a JV in rail signalling, while Siemens could offer to divest Alstom's wind and nuclear-power interests to Areva.
- However, Alstom wants cash and supports GE's bid, and although it is interested in strengthening its presence in rail signaling, it doesn't want to add to its rolling stock.
Thu, May. 15, 5:22 AM
- French Prime Minister Manuel Valls has signed a decree that extends the state's powers to block foreign takeovers to the energy, water, transport, telecoms and health sectors, with any acquisition in what the government now considers to be "strategic" industries needing the approval of the Economy Minister.
- The move adds to the government's authority to prevent deals in the nuclear, encryption and vaccines fields.
- It will also give France more say in the potential sale of Alstom's (ALSMY) energy assets to GE (GE) or Siemens (SI). French Economy Minster Arnaud Montebourg has criticized the GE proposal and advocated a deal with Siemens.
- The risk is that foreign investors could be further put off from doing business in France at a time that the economy is stagnating.
- ETF: EWQ
Mon, May. 12, 8:20 AM
- Siemens (SI) starts a stock-repurchase program worth up to €4B ($5.5B), with the German conglomerate set to buy as many as 47.8M shares by October 31, 2015.
- Siemens announced the plan in November but put it on hold, as it was formulating a restructuring plan.
- The company has received the backing of German Chancellor Angela Merkel in its attempt to acquire Alstom's (ALSMY) power business. However, Merkel also said the decision is a corporate one and so she "will not get involved in that." French President Francois Holland said his government is still waiting for Siemens to makes a detailed offer.
- Shares are +1.2% premarket.
Fri, May. 9, 7:44 AM
- France reportedly wants state-controlled nuclear group Areva (ARVCF) to take over Alstom's offshore wind turbine unit if GE's bid for Alstom (ALSMY, AOMFF) succeeds.
- Areva and Alstom both produce offshore wind turbines and are part of different groups to build 3K mw of wind power off the French coast in coming years, although their technologies are different.
Wed, May. 7, 7:51 AM
- Alstom (ALSMY, AOMFF) is interested in taking over GE's railway signaling business as part of the current talks over the sale of its power division, CEO Patrick Kron says.
- Kron's comments echo the request made by the French economy minister, who suggested earlier this week that GE transfer its railway division to Alstom, but railway signaling is a crucial business with high profit margins that GE may be loathe to cut loose.
- GE also manufactures locomotives for freight trains in the U.S., but Kron says Alstom isn't interested.
Mon, May. 5, 2:41 PM
- The French government formally declares its opposition to GE’s (GE -0.4%) friendly $13.5B offer for Alstom's (ALSMY, AOMFF) energy assets, saying in a letter to GE that the deal should be reconfigured on a more equitable footing.
- The government’s legal means for stopping a deal appears limited, though it could refuse to approve such an investment on national security grounds; economy minister Montebourg notes in his letter that the government was Alstom’s most important customer.
- Alstom’s energy units, which make turbines for nuclear, coal and gas power plants, as well as the grid infrastructure to deliver electricity, contribute ~75% of its €20B (~$30B) in the company’s annual sales.
Mon, May. 5, 12:22 PM
- GE (GE -0.4%) shares have gained just 1.7% since the news first broke that it was considering a bid for Alstom (ALSMY, AOMFF) energy assets, perhaps reflecting the good news/bad news nature of a potential deal, according to Morgan Stanley's Nigel Coe.
- The bearish view holds that GE is heavily increasing exposure to a more commoditized area of the power generation spectrum (coal, hydro, transmission), the acquisition of a large European competitor carries significant “clash of culture” risks, and there's the potential for large project write-downs and restructuring programs.
- On the other hand, coal generation is not going away any time soon with installed base growth comparable to gas over the next 20 years, and the service annuity on Alstom’s substantial installed base of coal and steam turbines accounts for the majority of the transaction value, Coe says.
Wed, Apr. 30, 7:48 AM
- GE confirms it made a binding offer of $16.9B (€12.3B) for Alstom's (ALSMY, AOMFF) energy business, opening official negotiations with the French company in an attempt to thwart a potential counterbid from Siemens (SI).
- The offer consists of $13.5B (€9.9B) enterprise value and $3.4B (€2.5B) of net cash.
- Alstom's board has appointed a committee of independent directors to review the transaction by June 2, leaving the door open for Siemens, which says it will bid for Alstom pending access to financial information.
- French Economy Minister Montebourg says the government would not block a takeover if the state retained control over Alstom's nuclear activities.
Tue, Apr. 29, 4:58 PM
- Alstom's (ALSMY, AOMFF) board reportedly has voted to accept an offer from GE to buy its energy business for ~$13B.
- The decision, expected to be announced as soon as tomorrow, came as a French government minister advocates for a rival proposal from Siemens (SI), but the preliminary deal would give GE a leg up in the politically charged battle.
- The deal still would need approval from Alstom's union and other constituents.
Tue, Apr. 29, 12:19 PM
- French Economy Minister Arnaud Montebourg says Siemens (SI +0.2%) is in the process of submitting an offer to buy the power business of Alstom (ALSMY, AOMFF) to counter a bid from GE.
- Alstom's board is due to meet today to discuss the two proposals; GE has offered more than $12B for the power division, while SI has expressed interest in swapping the unit for part of its train division and a smaller amount of cash.
- Montebourg says he has asked France's stock market regulator to ensure that both offers for Alstom's energy business were treated equally, which could prolong the negotiations over Alstom's future.
Mon, Apr. 28, 8:10 AM
- French President Francois Hollande doesn't oppose GE's (GE) proposal to acquire Alstom's (ALSMY) energy assets, Bloomberg reports.
- Hollande's view is different from that of Industry Minister Arnaud Montebourg, who supports a deal in which Alstom would swap its energy operations for some of Siemens' (SI) rail business.
- Hollande and GE CEO Jeff Immelt held talks in Paris today in a meeting that focused on protecting jobs and ensuring that France’s nuclear industry remains independent. Hollande is due to meet Siemens CEO Joe Kaeser and Chairman Gerhard Cromme as well.
- GE argues that its proposal would lead to fewer job cuts, as it has smaller overlaps with Alstom, while Siemens is willing to make guarantees about jobs and executive positions.
- Meanwhile, Germany's government hopes Siemens wins out, Reuters reports, believing that it would be a great opportunity for France and Germany.
Mon, Apr. 28, 3:40 AM
- Siemens (SI) has reportedly offered to swap its train business with Alstom's (ALSMY) energy operations and make an additional cash payment.
- Siemens is also willing to meet or even top an offer from GE (GE) for Alstom's energy assets that values the French group at $13B, and it has made guarantees about jobs, management positions and locations.
- Siemens would consider a straight purchase of Alstom's energy business as well; either way, the German company has the backing of the French government, although GE's bid might encounter less EU regulatory opposition.
- GE CEO Jeff Immelt is set to meet French President Francois Hollande and Economy Minister Arnaud Montebourg today to discuss Alstom. Immelt was due to meet Montebourg yesterday, but the latter postponed the talks.
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