GE takeover of Alstom almost done
GE’s CEO Jeff Immelt will meet with President Hollande this week as GE is easing the French Government concern on nuclear power.
As Siemens and Arnaud Montebourg’s Plan C proposal take time to formalize, GE’s CEO Jeffrey Immelt is scheduled to meet with President Hollande on Wednesday in what seems to be a final round of this negotiation on Alstom’s takeover by General Electric.
Truth is, as we wrote originally, the French Government has no other choices. Siemens is very slow at putting together a counter proposal and may have trouble matching GE’s terms that include $17B in cash for the purchase of Alstom’s Energy Unit. This is a 60% premium over Alstom value before the IPO was launched. On top of this very favorable cash condition, GE is offering the French Government numerous guarantees regarding employment and maintaining power of decision in France. The latest of these concessions is the promise made by CEO of General Electric in France Clara Gaymard to keep nuclear power unit in France.
At the same time, Minister of industry Arnaud Montebourg’s attempt to build a 100% French counter proposal, also called Plan C, was short lived. There does not seem to be any more hurdles for GE’s takeover of Alstom in the next few days.