FRANKFURT: German engineering giant Siemens is working on a joint bid with Mitsubishi Heavy Industries (MHI) for the energy assets of French group Alstom, the companies said yesterday. However, sources within Alstom dismissed the joint offer, saying it would effectively mean a break-up of the French “national jewel”.
Alstom , which favours a rival offer by US giant General Electric, “is sceptical and shocked... It would be a dismantling” of the group, the sources said.
Mitsubishi Heavy Industries and Siemens said a statement that they have “joined forces in evaluating a potential proposal for certain assets of the French multinational conglomerate Alstom in order to strengthen the future position of Alstom, MHI and Siemens.” The two groups would decide on the submission of a proposal to Alstom’s board of directors “by June 16,” the statement said. The joint offer will rival a $17bn counter-bid by US giant General Electric, which, while favoured by Alstom itself, has run into political opposition in France.
The French government views Alstom as a firm of national strategic importance and is concerned about safeguarding jobs as it battles record unemployment
and declining industrial competitiveness. AFP
