Germany’s Siemens and Japan’s Mitsubishi Heavy Industries made a joint move for Alstom on Monday in an offer that included 7 billion or $9.5 billion, challenging General Electric’s overture.
Under the offer, Siemens proposed to acquire Alstom’s gas turbines unit for 3.9 billion euros in cash. Mitsubishi offered to buy interests in Alstom’s power assets, which include hydroelectric power equipment and grid, to be owned by separate partnerships.
Mitsubishi desires to pump 3.1 billion euros in cash into Alstom and propose to buy about 10% stake in the French company from Bouygues shares.
“Alstom would remain an independent energy and transport player with a strong brand. Its energy business would be strengthened through the partner MHI and we intend to explore opportunities with Alstom to create a European rail champion for the world market,” chief executive of Siemens Joe Kaeser is quoted by Reuters as saying.
Alstom said it would take a look at the joint offer in the next couple of days.
People familiar with the developments said the overture beats GE’s by over 1 billion euros, considering the value components of the power unit that Alstom will continue to control.
GE said it had made headway in its talks with the French government on its bid for Alstom’s energy venture. The company’s offer included proposed partnerships in the energy and transport sectors. GE spokesman said the company won’t take part in a bidding rivalry.
According to the New York Times, the race to takeover Alstom assets has taken the shape of a political contest for the most part, with suitors striving to impress the French government more than investors. GE offered to buy the firm’s assets for $13.5 billion.
Kaeser added that the proposed offer is meant to make Alstom stronger and preserve it. He said Alstom’s valuation was stronger in the offer.
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