Home > GE looks to avoid bidding war for Alstom

GE looks to avoid bidding war for Alstom

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US industrial giant General Electric wants to avoid a bidding war for France-based company Alstom, despite a rival bid from Siemens and Mitsubishi.

According to Sky News, GE has offered $US17 billion ($A18.4 billion) for the Alstom energy unit, which builds generators, turbines and transmission systems and, according to an email from GE spokesman, is confident that the offer represents a good deal for all parties.

The rival bid from Siemens and Mitsubishi Heavy Industries is for Siemens to buy Alstom's gas turbine business for 3.9 billion euros ($A5.9 billion) in cash; and for Mitsubishi to inject 3.1 billion euros in cash into Alstom and offer to acquire up to a 10 per cent stake from Alstom shareholder Bouygues.

A person close to GE told Reuters the company is talking to the French government about possibly changing terms of the bid not related to price.

The GE bid has been met by some opposition in France because of fears that jobs may be lost and Alstom’s business activity may slow.

According to the Reuters source, GE is addressing these issues in its talks with the government. Specifically, the talks are focused on nuclear technology associated with Alstom's steam turbine business.

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