Wednesday, December 17th0.2°C
24563
23875

General Electric makes new guarantees on jobs in revised offer for Alstom's power business

PARIS - General Electric Co. on Thursday submitted a revised offer to buy the power generation business of France's Alstom SA that the American company hopes will be enough to win approval from the French government and see off a rival bid by Germany's Siemens AG.

GE says its new offer revises the $17 billion cash offer for Alstom's power business it made in April, adding new guarantees on sensitive concerns over jobs and decision-making, while leaving the deal's overall value unchanged.

In a statement, GE Chief Executive Jeff Immelt said the revised offer was the result of seven weeks of discussions with the French government. The new offer "creates jobs, establishes headquarters decision-making in France and ensures that the Alstom name will endure," Immelt said.

Whereas the original offer entailed a clear-cut cash buyout of Alstom's power business, GE's 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 offer Wednesday, and an independent committee of Alstom's board is slated to review both offers and make a recommendation to the entire board before Monday.

Alstom CEO Patrick Kron has made clear his preference for the GE tie-up, which he himself had a role in negotiating. Siemens and Mitsubishi emerged as rival bidders after the French government expressed reserves about seeing the historic French company fall under American sway.

GE reiterated its demand that Alstom's board take a decision on accepting the deal by June 23.

The Canadian Press


Read more Business News

24304


Recent Trending




Today's Market
S&P TSX14213.88+352.36
S&P CDNX659.00+16.65
DJIA17356.87288.00
Nasdaq4644.312+96.477
S&P 5002012.89+40.15
CDN Dollar0.8594+0.0007
Gold1199.50+5.20
Oil56.51+0.04
Lumber337.20+3.00
Natural Gas3.703+0.001

 
Okanagan Companies
Pacific Safety0.125+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.27+0.04
Cantex0.03-0.005
Anavex Life Sciences0.1659-0.0241
Metalex Ventures0.05-0.005
Russel Metals27.18+1.03
Copper Mountain Mining1.54+0.11
Colorado Resources0.105-0.005
ReliaBrand Inc0.0199+0.0065
Sunrise Resources Ltd0.055+0.005
Mission Ready Services0.22+0.02

 
24130


23041

FEATURED Property
2097664949 Monashee Place
3 bedrooms 3 baths
$559,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Managing your sales team

Managing a sales team can be quite a challenge. Harnessing individual personality preferences and getting everyone focused on the same goals, moving at the same pace, and working in collaboration to d...


Working under the table

They say there are only two things that are certain in life: death and taxes. Not exactly an uplifting thought, but true nonetheless. Some people try to avoid paying tax by “working under the ta...


Housing prices to skyrocket?

As most of you know, this column was started with a focus on Okanagan real estate. Over time, more and more columnists started covering the real estate sphere and so it morphed in to a personal colum...

_





24386


Member of BC Press Council


23871