France rejects General Electric's $17bn bid for Alstom

Partly state-owned, Alstom's market value was about 8.3 billion euros ($11.5 billion) and has investments worldwide.

France rejects General Electric's $17bn bid for Alstom

World Bulletin / News Desk

French President Francois Hollande has dismissed General Electric's $17 billion bid for French firm Alstom's energy division.

Speaking on Tuesday to BFMTV and RMC radio, Hollande said that General Electric’s offer for Alstom -- one of the country's largest engineering firms -- to buy its energy and transport conglomerate "is not enough, so it is not acceptable."

He added that the French government would seek better offers.

In a letter to the U.S. industrial group, French Economy Minister Arnaud Montebourg said he was concerned about the "isolation" of Alstom’s rail transport interests.

GE responded in a statement that their current offer is "good for France, good for Alstom." The company said is was ready to continue negotiations.

Partly state-owned, Alstom's market value was about 8.3 billion euros ($11.5 billion) and has investments worldwide. In the years 2012–2013 Alstom had annual sales of €20.3 billion, and employed approximately 93,000 people in around 100 countries, according to the company website.

In 2004, the French government increased its share in Alstom to 21 percent to help the company, which was then in a difficult financial position.

Alstom’s energy division makes up to 70 percent of the firm’s total profit; it employs nearly 18,000 people.

Last Mod: 07 Mayıs 2014, 12:06
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