Siemens, Mitsubishi sweeten Alstom bid
They’re hoping to derail GE’s $17 billion deal.
BERLIN — The international race to take over France’s engineering company Alstom SA entered its final stretch June 2, with Siemens and Mitsubishi Heavy Industries responding to General Electric Co.’s sweetened bid by raising their own combined offer.
Alstom is to decide by June 23 what offer to accept, after the French government had solicited improved bids for the company, which builds turbines for power stations and pioneered the high-speed TGV trains, later exported around the world. The government is concerned over a loss of jobs and sensitive energy technology from France.
Siemens of Germany and Mitsubishi of Japan said in a statement they were raising their joint cash offer by 1.2 billion euros ($1.63 billion) to 8.2 billion euros, which increases their overall valuation of Alstom’s energy business by 400 million euros to 14.6 billion euros.
Siemens hopes to acquire Alstom’s gas business entirely, while Mitsubishi would take a 10% stake in Alstom under their proposal.
GE, meantime, has since April bid 12.35 billion ($17 billion) to buy Alstom’s power business. It has added new guarantees on jobs and decision-making by offering to set up the new energy business as three joint ventures, while leaving the cash value unchanged.
Alstom CEO Patrick Kron had earlier made clear his preference for the GE tie-up, which he himself had a role in negotiating. Siemens and Mitsubishi emerged as rival bidders after the French government sought a better deal for Alstom.