Siemens, Mitsubishi unveil joint bid for Alstom's energy ops

Siemens and Mitsubishi Heavy Industries unveiled Monday the terms of their joint bid for the energy assets of French industrial jewel Alstom, also coveted by General Electric in the US. Siemens said in a statement that it "intends to acquire 100 percent of Alstom's gas business, including related service contracts, for 3.9 billion euros ($5.3 billion) in cash".
That is significantly less than a preliminary offer Siemens reportedly put on the table in April: a bid of 10.5 billion to 11 billion euros for Alstom's energy unit, with its train division in the mix. Siemens announced last week that it was joining forces with MHI to launch a rival offer to a $17-billion bid by GE. The details were finalised in talks on Sunday.
GE on Monday said it would not engage in a "bidding war" and that it was "confident" that its deal proposal for Alstom "is good for Alstom, for France and GE". Alstom's energy unit, which builds generators, turbines and transmission systems, accounts for 70 percent of its business. Under the plans announced Monday, Japan's MHI will inject 3.1 billion euros in cash into the company and "become a stable and long-term shareholder of Alstom by offering to acquire up to 10 percent stake from Bouygues," the statement said.
MHI would create three joint ventures by acquiring 40 percent of Alstom's nuclear business and 20 percent each of its grid and hydroelectric business. "Alstom would remain an independent energy and transport player with a strong brand," said Siemens chief executive Joe Kaeser. "Its energy business would be strengthened through the partner MHI and we intend to explore opportunities with Alstom to create a European rail champion for the world market."
Alstom is one of France's biggest private sector employers, with about 18,000 staff nation-wide. Seeking to allay any fears about possible layoffs arising from a deal, GE promised late May to create 1,000 jobs in France. While Alstom itself has repeatedly said it favours GE's bid, the US offer has run into political opposition in France.