France, Levallois-Perret: Siemens and Mitsubishi Heavy Industries are, according to the reports, preparing to make a joint offer that could pressure General Electric to improve its bid for Alstom power business.
The new offer would leave Siemens with control of Alstom’s gas turbine business, the sources said. The gas turbine business is considered one of Alstom’s most attractive assets because of rapid increase in natural gas production in the United States and other countries, reports Deal Book.
According to the offer, Mitsubishi would take control over other units, e.g. those that supply power equipment for distributing power around a network, which might operate as joint ventures with Alstom and allow the French government to retain influence.
This offer would help to preserve Alstom’s brand name and identity, the source said, adding that Siemens and Mitsubishi would formally submit a bid for Alstom. Michel Sapin, the French finance minister, said on Sunday: “I think that GE will also sweeten its offer.”
Both G.E. and Siemens have sought to convince the French government that they would create jobs in France and ensure that Alstom remains a symbol of French prowess. The French government does not own Alstom shares but has granted itself the power to veto any deals.
However, GE indicated that it will continue pursuing Alstom as completing a deal would help the American company expand abroad more quickly.
Source: Deal Book