Who will buy Alstom? - General Electric improves offer for French company takeover

American industrial conglomerate, General Electric (GE) delieverd on Thursday (June 19,2014) revised offer for taking over energy section of the French Alstom.

GE hopes that the improved offer will be sufficient to get the “green light” from the French government and that it will outdo mutual offer of German Siemen and Japanese Mitsubishi, AP agency reports.

As GE says, new suggestion revises primary offer from April, totaling USD,17 billion in cash (some EUR 12,4 mil), and new guarantees were added when it comes to sensitive questions such as positions and decision-making processes but the entire value of the contract remained the same.

While the first offer implied defined cash purchase of Alstom’s energy section, in the new proposal, GE invites the French company to set up three mutual companies where they will have 50-50% stake, one of which will be electricity production company, the other one will produce parts for hydro power plants and the third one would produce turbines for nuclear electric power plants.

German Siemens and Japanese Mitsubishi presented their offer on Wednesday and independent committee of Alstom’s Managing Board should estimate both offers and delivers its recommendations to the company board before Monday.