We suspect this is not exactly the great news that GE was expecting... but it looks like a win. French minister Montebourg believes none of the current offers fulfill their demands and will use a decree to block the deal:
- *MONTEBOURG SAYS FRENCH STATE TO TAKE 20% STAKE IN ALSTOM
- *MONTEBOURG SAYS FRANCE WILL BUY ALSTOM STAKE OR BLOCK GE OFFER
- *MONTEBOURG SAYS FRANCE WILL USE DECREE IN ALSTOM CASE
- *MONTEBOURG SAYS FRANCE WILL ENTER IN ALLIANCE WITH GE
- *MONTEBOURG SAYS FRANCE SEEKING ALSTOM STAKE AT MARKET PRICE
So GE forced to partner with French or no deal. Nothing like partnering with the (almost) most socialist government on the planet to make money.
As Bloomberg reports,
The French state will enter an alliance with General Electric Co. and take a 20 percent stake in engineering company Alstom SA to support a takeover.
The deal will allow GE to buy Alstom’s gas turbine business and other energuy assets, French Economy Minister Arnaud Montebourg said in Paris today.
The move may end a takeover battle between GE and Siemens AG for Alstom’s energy assets. Both GE Chief Executive Officer Jeffrey Immelt and Siemens CEO Joe Kaeser met several times with French government officals who had been pressing for more guarantees on jobs and the country’s energy independence since GE unveiled its bid on April 30.
While the U.S. company seeks its biggest purchase yet to expand in Europe, Siemens wants to avoid its main competitor bulking up in its own backyard.
Bloomberg adds more from Montebourg's press conference:
- *MONTEBOURG SAYS [GE/GOVT] ALLIANCE WILL FORM JVS IN STEAM, NUCLEAR, HYDRO
- *MONTEBOURG SAYS GE AND ALSTOM WILL ALSO FORM ALLIANCE IN GRID
- *MONTEBOURG SAYS GE WILL BUY ALSTOM'S GAS BUSINESS
- *FRANCE TO BUY TWO-THIRDS OF BOUYGUES'S ALSTOM STAKE: AFP
- *MONTEBOURG SAYS ALSTOM WILL BUY GE SIGNALING FOR EU1 BILLION
- *MONTEBOURG SAYS HE WROTE LETTER TO GE DETAILING FRENCH DEMANDS
- *MONTEBOURG SAYS SIEMENS BID WAS IMPEDED BY EU ANTITRUST RULES
- *MONTEBOURG SAYS EU COMMISSION IS MAIN OBSTACLE FOR EU CHAMPIONS
And from Reuters,
- FRANCE BELIEVES CURRENT OFFERS FOR ALSTOM DO NOT FULFIL ALL ITS DEMANDS
- FRENCH ECONOMY MINISTER MONTEBOURG SAYS FRANCE TO HOLD GOLDEN SHARE IN THE NUCLEAR 50:50 JOINT VENTURE
GE Stock is entirely unimpressed.