Alstom sues GE in dispute over purchase of signaling unit
France's Alstom has filed a breach of contract suit against General Electric rooted in a dispute focused on Alstom's agreement to buy GE's rail signalling business two years ago, the companies confirmed Thursday.
Alstom's suit in a New York court alleges that GE has not adhered to agreed procedures for settling disputes by arbitration.
GE agreed to sell the signalling division to Alstom in 2014 for $800 million as part of the US company's purchase of Alstom's energy business for about $10.6 billion.
But early this year the two fell into disagreement over the valuation of the assets Alstom was buying.
After the two failed to settle the issue themselves during a "resolution period," Alstom sought to bring the matter to the designated arbitrator, accounting house Deloitte.
But GE told Alstom that it disagreed with the French company's calculations and that it filed on May 9 a request for arbitration before the International Chamber of Commerce, according to the Alstom suit.
"We disagree with the allegations and look forward to resolving the matter as provided for in the contract," a GE spokesman said.
An Alstom spokesman declined comment.
© 2016 AFP