GE says it will not enter Alstom bidding war

16th June 2014, Comments 0 comments

US industrial giant General Electric Monday said it would not engage in a "bidding war" for energy assets of French company Alstom as Siemens and Mitsubishi unveiled a rival bid.

GE is "confident" its $17 billion deal proposal for Alston "is good for Alstom, for France and GE," a GE spokesman said in an email.

On Monday, German engineering giant Siemens and Japanese peer Mitsubishi Heavy Industries unveiled a joint bid in which Siemens would buy Alstom's gas turbine business for 3.9 billion euros ($5.3 billion) in cash and Mitsubishi would inject 3.1 billion euros in cash into Alstom and offer to acquire up to a 10 percent stake from Alstom shareholder Bouygues.

GE has offered $17 billion for the Alstom energy unit, which builds generators, turbines and transmission systems.

While Alstom itself has repeatedly said it favours GE's bid, the US offer has run into political opposition in France, with French officials pressuring GE to make guarantees on employment and activity levels in France.

Seeking to allay any fears about possible layoffs arising from a deal, GE promised in late May to create 1,000 jobs in France.

GE indicated Monday it would continue to work with the French government.

"We have made progress in our discussions with the French government, including proposing alliances in energy and transport. This would ensure that Alstom remains a vibrant player in both industries."

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© 2014 AFP

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