Western Railroad Discussion > GE in talks to buy Alstom for $13 billion

http://www.cnbc.com/id/101608168

cutting out the middle man...

http://www.bloomberg.com/news/2014-04-23/ge-said-in-talks-to-buy-france-s-alstom-for-about-13-billion.html

Only GE could afford to do something like that!! I wonder if Bombardier is next.

But it looks like the railroad part of Alstom wouldn't be part of the acquisition to avoid approval issues with the French government. Wonder if Bombardier would buy the railroad part(s) of Alstom.

Nathan

atsf121 Wrote:
-------------------------------------------------------
> But it looks like the railroad part of Alstom
> wouldn't be part of the acquisition to avoid
> approval issues with the French government.
> Wonder if Bombardier would buy the railroad
> part(s) of Alstom.
>
> Nathan

The French are very sensitive to plant closings. Look at the uproar over CAT's plans to shut down a low performing French plant.

GE may be required to keep manufacturing plants open for an extended period of time to get the union's consent to the purchase deal. The technology, however, is top notch.

atsf121 Wrote:
-------------------------------------------------------
> But it looks like the railroad part of Alstom
> wouldn't be part of the acquisition to avoid
> approval issues with the French government.
> Wonder if Bombardier would buy the railroad
> part(s) of Alstom.
>
> Nathan


Bloomberg News is confirming that the railroad business will not be part of the sale to GE. The energy and power systems will be sold.

The NY Times reports the French government has made its interests known.

>> “G.E. and Alstom have their calendar, which is that of their shareholders,” the economy minister, Arnaud Montebourg, said, “but the French government has its own, which is that of economic sovereignty.”


http://dealbook.nytimes.com/2014/04/27/france-warns-alstom-on-possible-g-e-alliance/?_php=true&_type=blogs&src=twrhp&_r=0

The French authorities have decided the GE offer is unacceptable, and have let it be known that Siemens has asked for info on the proposed transaction. GE has been invited to present a new offer.

NASDAQ: http://www.nasdaq.com/article/french-minister-wants-ge-to-make-new-proposal-20140520-01064