Alstom Accepts GE Bid For Its Power Business: Reports

(RTTNews) - Speed-train maker Alstom SA's (AOMFF.PK, ALS.L) board has accepted a 10 billion euros bid from U.S. conglomerate General Electric Co. (GE) for its power-generation and transmission business, reports said Tuesday. The offer is now expected to be reviewed by an independent committee.

German conglomerate Siemens AG (SI) said earlier this week that it has informed Alstom of its willingness to talk about strategic issues of future cooperation. Siemens is supported by French officials who look for a European buyer for Alstom.

Alstom is a manufacturer of high-speed trains and power plant equipment. The company has been focusing on selling non-core assets in order to cut down on costs and reduce debt.

An acquisition of Alstom would give GE control of the French company's high-speed TGV trains and rail-signal technology. Alstom is expected to make a statement on the two offers on Wednesday.

Meanwhile, GE's chairman and CEO Jeffrey Immelt has met with the French Government to discuss potential investments by the company in France.

GE informed French officials that it has been investing for years in France. The company has about 10,000 employees in the country.

Once the deal closes, GE plans to base four global businesses in France, including hydropower and steam turbines.

GE settled marginally lower at $26.76 on Tuesday and Siemens was up 0.6 percent in Frankfurt to settle at 94.15 euros.

Alstom is expected to resume trading Wednesday after it was halted last week.