GE ready to offer $17B for Alstom
After a long meeting last night, Alstom’s board has unanimously praised G.E’s offer. According the French media, G.E has decided to overbid Siemens yesterday with a new offer at €12.35B ($17B), an amount substantially higher than its original offer of €9B proposed last week that was already representing a 25% premium over Alstom’s last quotation before G.E’s first bid. If this news is confirmed, G.E would be ready to purchase Alstom at almost 80% premium. On top of that, G.E promises to “develop employment in France”, to turn Belfort’s plant into its Thermic Energy Headquarter for Europe, to transfer to France its global smart grid, hydro power, and wind power businesses headquarters, and to sell Alstom wind turbine business to French investors.
Alstom’s acquisition by G.E is not bagged yet. While recognizing G.E’s project “strategic relevance”, Alstom’s board keeps the door open to other bidders. Siemens’ offer is quite different from G.E’s because it includes a swap with its transportation business in order to create a “European rail transportation giant” based in France. In a response to G.E’s new offer, Siemens is ready to add to the balance its urban transportation business on top of the train business the German group was already offering. Some experts also think that Siemens would be ready to add more money to the deal in order to sweeten the pill while at the same time some French media infer that other bidders may join the party. No rush, Alstom’s board stated yesterday that they will need a month to carefully consider all the propositions.