Alstom deal goes through
June 23, 2014
The final obstacle to General Electric's $17-billion (12.5-billion-euro) takeover of Alstom's power division has been overcome after the French government agreed to terms with the French engineering company's main shareholder.
"We have a deal that was concluded this afternoon which allows the state to become the main shareholder of Alstom with a stake of 20 percent, in a manner that would ensure the sustainability of an alliance between General Electric and Alstom," Economy Minister Arnaud Montebourg told France 2 television on Sunday.
The move means that the French government has fulfilled its pledge to retain a say in jobs and decision-making at the company, which builds power plants and high-speed TGV trains. Montebourg (pictured above) did not comment on the final price of the stake.
Saving jobs
Alstom has been the subject of an aggressive bidding war between GE and Siemens-Mitsubishi for several months.
President Francois Hollande's government had objected to the GE bid when it first emerged in April, on the grounds that jobs and decision-making could be lost.
Hollande instead encouraged German giant Siemens to make a counter-offer, hoping that a Siemens-Alstom tie-up would form a new European group. But Siemens linked up with Japan's Mitsubishi Heavy Industries to present a rival offer, which analysts say would lead to a breakup of Alstom.
But Siemens chief Joe Kaeser insisted that "it is not over." In an interview with Germany's mass-circulation Bild newspaper, he said he was still open for negotiations.
"The doors are open for Alstom and the French government," he said in extracts of the interview released ahead of publication on Monday.
bk/jr (AFP, AP)