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France Arbitrarily Decides To Become Largest Stakeholder In Alstom, May Use Decree To Block Deal If GE Disagrees

Tyler Durden's picture




 

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.

 

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Fri, 06/20/2014 - 11:44 | 4878095 buzzsaw99
buzzsaw99's picture

yeah, almost. the fascist usa buys stock all the time.

Fri, 06/20/2014 - 11:48 | 4878112 john39
john39's picture

isn't everything heading towards fascism these days?  socialism is just a buzzword used to lure the "progressive" voter in afterall...  its all the rage i hear.

Fri, 06/20/2014 - 11:55 | 4878131 buzzsaw99
buzzsaw99's picture

ge is just gubbermint electric in drag

Fri, 06/20/2014 - 11:58 | 4878138 NotApplicable
NotApplicable's picture

"Now go away, or I shall taunt you a second time!"

Fri, 06/20/2014 - 12:00 | 4878146 buzzsaw99
buzzsaw99's picture

you've already got one?

yes, it's very nice!

Fri, 06/20/2014 - 12:12 | 4878160 Headbanger
Headbanger's picture

Yeah, fuck you again Barry!

France won't be controlled by the dip shits ruining the U.S. cause they have their own dip shits to ruin themselves with!

 

Fri, 06/20/2014 - 12:45 | 4878335 Mark Urbo
Mark Urbo's picture

"GE forced to partner with French or no deal. Nothing like partnering with the (almost) most socialist government on the planet to make money."

Should not be a problem for leftist socialist GE.

Fri, 06/20/2014 - 13:23 | 4878470 Buckaroo Banzai
Buckaroo Banzai's picture

Considering GE wound up footing a big chunk of the bill for the Sandy Hook coverup, one is forced to conclude they are an evil, statist tool.

Fri, 06/20/2014 - 13:56 | 4878577 mumcard
mumcard's picture

Originally set up by JP Morgan.  Born and bred pedigree of filth.

Fri, 06/20/2014 - 12:31 | 4878272 kchrisc
kchrisc's picture

Fascism, socialism, communism, nationalism, etc. are just brands of totalitarianism with different "useful idiot" bases and ideologies.

They all bare the same fruit: Impoverished masses and wealthy pols, crats and elites.

 

Note: Government, all government, is at its core just, "Give us your shit and gun toting age children or we'll kill you." Totalitarianism is just more serious about it.

Fri, 06/20/2014 - 11:55 | 4878132 CrashisOptimistic
CrashisOptimistic's picture

Exactly.  It's all outcome by decree, now.

Do Not Be In The Stock Market.  Not long.  Not short.

Walk away.

Find farmland.

Fri, 06/20/2014 - 11:59 | 4878142 buzzsaw99
buzzsaw99's picture

.

Fri, 06/20/2014 - 11:59 | 4878140 AccreditedEYE
AccreditedEYE's picture

Exactly. When the Americans show ZERO respect for their own brand of free-market capitalism how can you expect the rest of the world to believe in it? What a weak and fragile state of affairs in America today. Pathetic.

Fri, 06/20/2014 - 12:12 | 4878194 buzzsaw99
buzzsaw99's picture

you know ge just wanted to ship all those french jobs to china, right?

Fri, 06/20/2014 - 13:49 | 4878550 williambanzai7
williambanzai7's picture

Fri, 06/20/2014 - 11:46 | 4878102 NoDebt
NoDebt's picture

A vision of what's to come everywhere.  Eventually, governments will own everything larger than the corner convenience store.

How, you ask?

When they take your 401k and IRA money, do you think they're going to make everyone liquidate those investments?  Of course not.  It would instantly crash every market in the world.  They'll just own all the stocks and bonds inside of those accounts.  Which means, they will instantly become majority stakeholders/owners/creditors in almost every company in the country and beyond.

Fri, 06/20/2014 - 11:53 | 4878124 Dr. Engali
Dr. Engali's picture

Why go through all that hassle when the BernankenYellenStein monster can just hit Ctrl-P and buy up the market at no cost to them?

Fri, 06/20/2014 - 12:01 | 4878154 NotApplicable
NotApplicable's picture

It's the difference between owning 90% of the world vs. 100%. Otherwise, that last 10% "leaks out into the economy" and causes inflation (and other nasty "externalities"), which they'd rather not have to deal with.

Not to mention, socialist tards will demand it, so that it will make things "fair."

Fri, 06/20/2014 - 12:16 | 4878210 Dr. Engali
Dr. Engali's picture

There will have been so much inflation that Joe baby boomer will have to sell everything in their 401(k)s and liquidate just to survive. There is no need for.gov to go to the nasty hassle of confiscating everybody's 401(k)s and IRAs.

Fri, 06/20/2014 - 11:47 | 4878105 NoWayJose
NoWayJose's picture

When the SHTF governments will no longer respect private property or ownership of any companies or resources, or bank accounts, or anything else they can get their hands on.

Fri, 06/20/2014 - 11:56 | 4878134 CrashisOptimistic
CrashisOptimistic's picture

Never you mind there, little Jose.

Oil scarcity will take your mind off all this silliness.

$107 now, despite dollar advance.

Fri, 06/20/2014 - 11:47 | 4878107 youngman
youngman's picture

Jeffy will so go ahead with the deal...he loves Socialists

Fri, 06/20/2014 - 11:56 | 4878133 Squid Viscous
Squid Viscous's picture

as long as he can get his $250 blow dry haircut every week, what a fag

Fri, 06/20/2014 - 11:49 | 4878111 DavidC
DavidC's picture

These times are more Kafkaesque than the ones he wrote about...

DavidC

Fri, 06/20/2014 - 11:51 | 4878118 BadKiTTy
BadKiTTy's picture

If you want your 401k's ...... you can keep your 401k's

Fri, 06/20/2014 - 11:52 | 4878120 lizzy36
lizzy36's picture

Vive Le France!

The invented a new poision pill.....themselves.

Fri, 06/20/2014 - 11:54 | 4878128 machineh
machineh's picture

When life gives you a reverse Midas touch that turns everything to merde ... MAKE METHANE! ;-)

Fri, 06/20/2014 - 12:23 | 4878242 disabledvet
disabledvet's picture

Joe Kaiser? What kind of name is that?

"Hi, i'm Joe Kaiser!" REALLY? "And this is my wife Nannette!"

The dude who trained me to drive a big rig was named "Keisler" (short for Kaiserling.) That was a cool name. He looked like he could have been the son of the Kaiser actually. But "Joe Kaiser"? Sorry BUT THE DEAL IS OFF! JOE STALIN YES! JOE KAISER NO!

Looks like a good deal to GE to me. When the whole thing heads south (again) then can just sell it back to the Government. France needs the money...not the Government Owned Enterprise. It's so much easier to be bought off anyways. Who wants to actually run the thing?

https://www.youtube.com/watch?v=6MneA9pgLVw

Fri, 06/20/2014 - 11:54 | 4878127 Squid Viscous
Squid Viscous's picture

Does this mean no more Freedom Fries @ GE HQ cafeteria?

Fri, 06/20/2014 - 13:22 | 4878468 Terminus C
Terminus C's picture

French Fries are back on the menu boys!

Fri, 06/20/2014 - 12:00 | 4878147 All is chosen
All is chosen's picture

"Nothing like partnering with the (almost) most socialist government on the planet to make money."

 

That is where France is going wrong, trying to compete with Scottish levels of socialism. Unlike GBP, the Euro bites back, ... sometimes .... after years of subtle Gallic plunder.

Fri, 06/20/2014 - 12:01 | 4878152 Jack Sheet
Jack Sheet's picture

It's like the consummation of a gay marriage.

Fri, 06/20/2014 - 12:03 | 4878159 NotApplicable
NotApplicable's picture

Well, I'll be buggered!

Fri, 06/20/2014 - 12:11 | 4878172 tony wilson
tony wilson's picture

general electric the empire within.

 

a friend of mine spent  over 30 years working for a filtration company.

filtration systems for labs all over the world a world leader.

whatman it is called the company was set up over 220 years ago always in profit employed over a thousand people.

developed hundreds of bench mark class leading systems vital for many different industries around the world.

a peerless reputation a company to cherish in the uk times of decline.

the company got taken over by ge promises made about safety of jobs.

within months of take over lay offs occured.

within 16 months the land in maidstone sold off for 10s of millions, to property developers the paper mill will be bulldozed within  6 months.

fucking general electric asset stripped the company by the end of sept all the intellectual property and techniques will be tranfered to china.

this was a multi million pound profit making uk company with a top line worker skill set it will sonn be dead after 200 years.

general electric your born with them and with the help of nuclear waste and depleted uranium munitions you  will die at the hands of them.

satanic masonic cia cocksuckers.

 

asset stripping transfering jobs to china is what they do.

Fri, 06/20/2014 - 12:11 | 4878188 highly debtful
highly debtful's picture

Being Flemish, I hope that if the EU would ever split up in a northern and a southern entity, the frontier will run between Flanders and Wallonia. If not, we willl be truly and royally fucked here up north in Belgium. I really don't take kindly to the idea of becoming a northern province of France. 

Fri, 06/20/2014 - 12:24 | 4878249 khaproperty
khaproperty's picture

Nothing new from french administration - since 100 years.

It is not possible to get (free) access to Europe via France. Therefore EU will stay a chimäre next 500 years.

Fri, 06/20/2014 - 12:41 | 4878319 NYPoke
NYPoke's picture

If I recall correctly, the Francs where from the Germanic Tribes.  Instead of conquering, they just moved into modern day France & demanded the free goodies that the Roman Empire handed out to citizens.  Not much has changed,

 

They are the original Mexicans.

Fri, 06/20/2014 - 13:00 | 4878375 orangegeek
orangegeek's picture

ah, but we are french, we are proud, we keep our national companies

 

now Germany, please write us a check to do it because we are fucking broke

 

and do it after our 4 hour lunch - it's baguette day today you know

Fri, 06/20/2014 - 13:09 | 4878418 GCT
GCT's picture

Good GE needs a good fuckover.  This administration takes the GE CEO and makes him the job creator for the US.  He then closes most of his GE plants and ships them to China and Mexico.  GE has several lawsuits against them for taxes not paid and yet this smuck is there  to create jobs?  I guess they meant in foreign countries.

Although the French are all about Fascism and Socalism, I would prefer that too closng all the countrie's plants and shipping my job to another country.  I am even more nuts to think I would actually type this shit.  GE has been screwing countries of the world for decades.  Maybe it is time or some coutry to actually care about its people's labor being shipped out of their country.  The USA certainly does not give a shit about us.  As long as they promise shit people wil continue to vote for these assholes. 

Opps I fogot we will have even higher paying jobs if we just get rid of all those industries that make stuff.  More fucking stupid promises that believe in hope and change!

Fri, 06/20/2014 - 14:14 | 4878659 Joebloinvestor
Joebloinvestor's picture

Watch GE show it is stupider then a tire manufacturer.

 

http://www.zerohedge.com/news/2013-02-20/titan-ceo-crushes-socialist-wor...

Fri, 06/20/2014 - 14:29 | 4878725 Atomizer
Atomizer's picture

Someone needs to contact Jack Welsh on the phone to negotiate the slipping contract pitfalls. Maybe Jack can offer 50,000 free credit hours at Strayer as a deal breaker.

http://jackwelch.strayer.edu/about/jack-welch

 

 

/LOL

Fri, 06/20/2014 - 15:00 | 4878874 falak pema
falak pema's picture

The important thing is to do what you say. 

The ball is now in GE's court. Your move Mr Immelt 

BTW Sovereign states are "arbitrary" PROVIDED they assume to the hilt what they say! 

What will Obarry do in Iraq?

Fri, 06/20/2014 - 15:37 | 4879007 GCT
GCT's picture

Falak he will send in the spec ops to train the Iraqi Army.  Spec Ops will then go into combat and get killed.  Our president will then get on TV and address the nation on how he is sending in combat divisions because our spec ops guys were there on a peaceful mission and got killed.  The people will cheer and off to war they will go again.  I worked with spec ops and their mission is not peaceful!

Fri, 06/20/2014 - 16:03 | 4879080 falak pema
falak pema's picture

What does that have to do with Montebourg, french Don Quichote,  and the charge of the french donkey brigade called Alstom? 

What Obarry does in Iraq is game of thrones. In France we play game of french fondu !

French honor is safe as we hold the "fourchette" !

Fri, 06/20/2014 - 16:54 | 4879219 Bennie Noakes
Bennie Noakes's picture

So GE will partner with the French gov. to take over a French engineering company? I'm sure that will go well.

Wouldn't it be easier just to burn the money?

Fri, 06/20/2014 - 21:33 | 4879708 mjcOH1
mjcOH1's picture

"So GE will partner with the French gov. to take over a French engineering company? I'm sure that will go well.

Wouldn't it be easier just to burn the money?"

 

Yes it would.   But the French wouldn't get to shout loudly and excitedly or do elaborate posturing.

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