Get breaking news alerts via email

Click here to manage your alerts
Siemens CEO Joe Kaeser, right, and Mitsubishi CEO Shunichi Miyanaga, meet with media, after their Mitsubishi Heavy Industries meeting with French President Francois Hollande, to discuss their offer to buy parts French engineering company Alstom SA, in Paris, Tuesday, June 17, 2014. Joe Kaeser, CEO of Alstom's German rival Siemens AG, and Shunichi Miyanaga, CEO of Mitsubishi, were at the Elysee palace in Paris hours after they unveiled their offer to buy parts of Alstom. Siemens would pay 3.9 billion euros for the gas turbine business. Japan's Mitsubishi would purchase a 10 percent stake in Alstom and inject 3.1 billion euros into the struggling company. (AP Photo/Jacques Brinon)
French government supports GE bid for Alstom
Acquisitions » American firm apparently wins long fight for power-generation company.
First Published Jun 20 2014 09:10 am • Last Updated Jun 20 2014 12:02 pm

Paris • U.S. conglomerate General Electric Co. looked set to win its months-long fight to acquire the power generation business of France’s Alstom SA, after the French government dropped its objections and threw its support behind the American offer.

The final decision now rests with Alstom’s board, which was due to meet later Friday. GE, which has sought a deal with Alstom since April, had given the French company until Monday to sign off on the $17 billion offer.

Join the Discussion
Post a Comment

Friday’s announcement brings an end to months of uncertainty over whether GE would be able to win over the French government’s approval despite resistance by President Francois Hollande and other top officials.

French economy minister Arnaud Montebourg said Friday the government preferred GE’s offer to a rival bid from Germany’s Siemens and Japan’s Mitsubishi Heavy Industries, and would take a 20 percent stake in Alstom.

Alstom has favored a tie-up with GE but had to postpone signing the deal since April, as the government intervened to seek assurances on jobs and decision-making.

GE boss Jeff Immelt was in Paris on Thursday and Friday to press the case for his offer with officials from Alstom, the government and unions.

Immelt saw off the rival offer from Siemens and Mitsubishi, but only after revisions to take account of the French government’s concerns that the deal not lead to job losses, or move decision-making authority out of France.

Whereas GE’s original offer entailed a clear-cut cash buyout of Alstom’s power business, the new proposal calls for the two companies to set up three 50/50 joint ventures: one for the power grid businesses, another for the offshore wind and hydro-power operations, and a third for the nuclear steam turbines business.

Siemens and Mitsubishi Heavy Industries of Japan presented a rival bid Wednesday. An independent committee of Alstom’s board is slated to review both offers and make a recommendation to the entire board before Monday.

story continues below
story continues below

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.