The Canadian Press - ONLINE EDITION

CEOs of Siemens, Mitsubishi meet French president to promote Alstom offer, derail rival GE bid

  • Print

PARIS - The CEOs from Siemens and Mitsubishi Heavy Industries met with the French president on Tuesday to promote their joint offer to buy parts of French engineering company Alstom and head off a rival bid from General Electric Co.

Joe Kaeser of Germany's Siemens AG and Shunichi Miyanaga of Japan's Mitsubishi said they sought to persuade Francois Hollande that their offer was superior to GE's and would create "a strong, innovative European champion."

Alstom executives have said the deal negotiated over two months ago with GE was their preferred option, but French government concerns over keeping jobs and strategic technologies safely at home have delayed the deal's signing, giving Siemens and Mitsubishi an opening they hope to exploit.

"We believe this concept for Alstom, Mitsubishi and Siemens is superior in financial aspects, in strategic and industrial aspects and not least in social aspects," Kaeser said at a news conference after meeting Hollande at the Elysee presidential palace.

The proposed deal unveiled late Monday would see Siemens pay 3.9 billion euros ($5.3 billion) for Alstom SA's gas turbine business. Japan's Mitsubishi would purchase a 10 per cent stake in Alstom and inject 3.1 billion euros into the struggling company.

Including minority stakes by Mitsubishi in various other Alstom businesses, the deal values the French company at $19.3 billion, slightly more than the value implied by G.E.'s offer, the companies said.

"We want to keep a proud French icon strong and make it stronger," said Kaeser, adding he did not want to dismantle the company.

Alstom had in April already negotiated a competing $17 billion offer for its energy business from U.S. conglomerate General Electric Co., but the French government intervened to delay the deal's signing. GE has given Alstom until June 23 to decide.

While the French government finds GE appealing because of its long presence in France, it has tried to get other potential suitors for a company considered strategic because of its large presence in the key energy and transport sectors.

A ranking French official said in April the French priority in all matters is jobs, energy independence and keeping companies on French soil.

In addition to the cash transaction, Siemens said it would offer job guarantees for three years in France and Germany for the transferred business, and would establish its European headquarters for the combined gas service business in France.

Siemens also indicated that, following the closing of the deal, it would eventually "be prepared to become a long-term anchor shareholder in a combined transport business."

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Raw: Video shows destroyed West Hawk Inn

View more like this

Photo Store Gallery

  • Someone or thing is taking advantage of the inactivity at Kapyong Barracks,hundreds of Canada Geese-See Joe Bryksa’s goose a day for 30 days challenge- Day 15- May 22, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • Water lilys are reflected in the pond at the Leo Mol Sculpture Garden Tuesday afternoon. Standup photo. Sept 11,  2012 (Ruth Bonneville/Winnipeg Free Press)

View More Gallery Photos

Poll

Should panhandling at intersections be banned?

View Results

View Related Story

Ads by Google