Friday, August 22nd20.5°C
22951
21755

Siemens, Mitsubishi announce offer for parts of France's Alstom, effort to derail GE bid

BERLIN - Engineering giants Siemens of Germany and Mitsubishi Heavy Industries of Japan on Monday jointly offered to buy parts of France's Alstom and start a long-term partnership, a move that could derail a competing bid by General Electric.

Siemens AG said it is offering 3.9 billion euros ($5.3 billion) to acquire Alstom's gas business entirely, including related service contracts. Mitsubishi would purchase a 10 per cent stake of Alstom and inject 3.1 billion euros into the company.

Struggling Alstom already has a $17 billion offer on the table from General Electric Co. for its energy operations, but the French government has been cool to the idea of a buyout of a company that pioneered TGV high-speed trains, later exporting them around the world, and builds nuclear turbines.

Siemens and Mitsubishi promised their proposal would "preserve Alstom's current perimeter in almost all its activities, enhance its industrial sustainability, strengthen its position as a diversified global player in energy and transport, and strengthen its financial structure, while remaining a major French listed group."

French President Francois Hollande, who has said GE's offer is not good enough, said he would meet with the CEOs of both Siemens and Mitsubishi on Tuesday to discuss their proposal.

While the French government finds GE appealing because of its longtime presence in France, it has tried to have other potential suitors, like Siemens and Mitsubishi, make more appealing offers.

A ranking French official said in April that the French priority in all matters is jobs, energy independence and keeping companies on French soil.

In addition to the cash transaction, Siemens said it would offer job guarantees for three years in France and Germany for the transferred business, and would establish its European headquarters for the combined gas service business in France.

Siemens also indicated that following the closing of the deal, it would eventually "be prepared to become a long-term anchor shareholder in a combined transport business."

Siemens is a huge company with 359,000 employees worldwide that makes everything from gas- and wind-powered turbines to trains, medical imaging devices, factory machines and security equipment.

Mitsubishi Heavy is Japan's largest heavy machinery maker with $32 billion in annual revenue. It produces ships, engines, nuclear power plants and arms for Japan's defence ministry.

_____

Sylvie Corbet in Paris contributed to this report.

The Canadian Press


Read more Business News

22908


Recent Trending




Today's Market
S&P TSX15535.55-19.71
S&P CDNX1005.583.38
DJIA17001.22-38.27
Nasdaq4538.551+6.446
S&P 5001988.40-3.97
CDN Dollar0.9137-0.0003
Gold1279.90+6.2001
Oil96.30+1.82
Lumber352.80-2.80
Natural Gas3.88-0.009

 
Okanagan Companies
Pacific Safety0.18-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.20-0.01
Cantex0.065-0.005
Anavex Life Sciences0.265+0.005
Metalex Ventures0.08+0.005
Russel Metals36.78-0.81
Copper Mountain Mining2.99+0.11
Colorado Resources0.17-0.015
ReliaBrand Inc0.115+0.02
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.26+0.045

 



22315

FEATURED Property
1984057253-2001 Highway 97 S
3 bedrooms 2 baths
$87,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What is a journey without a destination?

Photo: ContributedI would call it a joy ride... You see a planned project or business has a destination. It may be an ongoing revenue stream, it may be a business value or an exit strategy. If you don...


Joint accounts: what you need to know!

Establishing a joint account may seem like a great strategy at first glance. However, there are many factors that must be considered before taking this action. This article will explore the use of &ls...


Cost of an Injury Lawyer

Let’s face it; nobody wants to pay for legal services if they do not have to, but if you have been injured in an accident you may have thought about hiring a lawyer to help you navigate your cla...

_



22885

23002


Member of BC Press Council


22854