Alstom : General Electric ready to improve its offer

The Board of Directors of Alstom welcomed the firm offer of € 12.35 billion made ​​by GE for its energy business. "The process is just beginning ," insisted the CEO of GE Wednesday night on France 2 .

General Electric proposes EUR 12.35 billion for the acquisition of Alstom's energy business. - AFP / ERIC PIERMONT
General Electric proposes EUR 12.35 billion for the acquisition of Alstom's energy business. - AFP / ERIC PIERMONT

The figure fell. Approximately € 12.35 billion were proposed by General Electric (GE ) for the Alstom energy industry , following the letter of appointment of Jeffrey Immelt François Hollande . The battle between the U.S. group and Siemens has entered a new phase with this firm offer made ​​public Wednesday morning American group . An offer welcomed by the Board of Directors of Alstom and will be "a thorough review" by the end of May In this context, a committee of independent directors , led by Jean- Martin Folz, consider the U.S. proposal "taking into account the interests of all stakeholders, including those of the French state."

It is this idea which was taken Wednesday morning by Jeffrey Immelt , CEO of GE , in a telephone statement to some journalists . He found his "good" offer for Alstom and France . "We believe that the net employment increase around Alstom's assets ," he says , assénant again this argument already mentioned in his letter to the President of the Republic and in the press General Electric.

France 2 on Wednesday night , the CEO of GE recalled the long term commitment of GE in France . "We were a good partner , a good investor in aerospace, health, energy," he said. "What I would say to the French is that we will be a good investor , as we have been for decades ."

"The process is just beginning , so there will be other opportunities for us to change , to improve what we do ," said Jeffrey Immelt .

In a statement, GE says the structure of its offer. For Thermal Power activities , Renewable and Power Grid, the American firm has proposed $ 13.5 billion , or about € 9.9 billion in enterprise value and $ 3.4 billion , or about 2 5 billion euros in net cash. According to the calculations of GE , this operation would cost synergies of over $ 1.2 billion at the end of 5 years.

In exchange for his return Wednesday, as Alstom closed up nearly 10 %.

In a video that has procured France Info, Patrick Kron , CEO of Alstom, boasts among its employees offer General Electric unambiguously .


DOCUMENT | General Electric : Alstom would he ... by FranceInfo
The state increasingly involved

Asked on France Inter, the Prime Minister Manuel Valls said Wednesday that the French government was heard on his two major concerns in this issue: employment and energy supply in France . An element whose importance is biased by the Ukrainian crisis, he said. Manuel Valls also argued that foreign investors are welcome in France but stressed the need for transparency in all such important operations.

"It is clear that the state will have a say ," said Wednesday Patrick Kron, Alstom 's boss , during a telephone press briefing. Bouygues will remain a shareholder in about 29% of the railway business after the sale of the energy business, has he added.

During a hearing before the Economic Affairs Committee of the National Assembly , Arnaud Montebourg was very clear about what is expected the state. "We want alliances , we do not want removals ," said the Minister of Economy . He went further to say that increased state participation in the capital is "under review " in response to the request of the trade unions. Among them, the CFDT has evoked a "temporary nationalization" . The French government , which currently has nearly 1% via the Caisse des Dépôts et Consignations of (CDC) , wants to take the time to defend its " corporate interests ," said the minister. In short, Arnaud Montebourg summarizes the situation , the file is not " bent ".

Alstom close any door

The other contender for the acquisition of Alstom's energy industry , the German Siemens group is still in the race that the American option has yet a significant advance. Despite the support of the French government to Siemens. Alstom has indicated that it would be " equitable access to information" for a possible firm offer can be made.

In its statement, Alstom also states that it reserves the right answer for the acquisition of "all or part " of its energy industry " unsolicited offers ". Sign that this battle may be far from over and that the French group wants to close any doors .


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