GE ups stakes against Siemens in battle for Alstom arm

General Electric improves bid for French firm's energy wing as Siemens prepares its final offer

GE ups stakes against Siemens in battle for Alstom arm

World Bulletin/News Desk

Competition between America's General Electric and Germany’s Siemens to purchase the energy arm of French firm Alstom has intensified after GE increased its offer.

General Electric’s management announced on Wednesday that they will be improving their previous offer of $12.35 billion, which had been refused by Alstom.

GE also said it would be improving the clauses in their bid regarding the protection of employees in the company. No further details were announced.

Meanwhile, Siemens announced it would present its final offer to the French company by 16 June.

“Plan A is American GE buys Alstom shares. Plan B is German Siemens buys Alstom shares. Plan C could be domestic capital increases its share in Alstom,” Economy Minister Arnaud Montebourg said last week.

- Financial difficulty

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

Alstom had annual sales of €20.3 billion in 2012 to 2013 and employed approximately 93,000 people in about 100 countries, according to the company's website.

The French government increased its share in Alstom to 21 percent in 2004 to help the company, which was facing financial difficulty.

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

Last Mod: 28 Mayıs 2014, 15:59
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