Tuesday, October 21st14.0°C
23836
22828

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

23615


Recent Trending




Today's Market
S&P TSX14527.46+189.69
S&P CDNX822.7711.42
DJIA16581.41181.74
Nasdaq4405.419+89.345
S&P 5001936.01+32.00
CDN Dollar0.8906+0.0047
Gold1251.00+6.30
Oil81.26-0.12
Lumber329.20-1.70
Natural Gas3.681+0.011

 
Okanagan Companies
Pacific Safety0.11+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.15+0.03
Cantex0.055-0.025
Anavex Life Sciences0.1910.00
Metalex Ventures0.045-0.005
Russel Metals32.98+0.70
Copper Mountain Mining2.16+0.17
Colorado Resources0.150.00
ReliaBrand Inc0.0111-0.0019
Sunrise Resources Ltd0.060.00
Mission Ready Services0.48+0.03

 



23658

FEATURED Property
198297192-1750 Lenz Road
2 bedrooms 2 baths
$329,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...


Experts share strategies in Kelowna

The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...

_








Member of BC Press Council


22496