GE Agrees To Extend Deadline On Alstom Bid At France's Request

(RTTNews) - Diversified conglomerate General Electric Co. (GE) said Thursday at the request of the French government, it has agreed to extended the deadline by three weeks for its $16.9 billion bid to acquire the energy assets of French speed-train maker Alstom SA (ALSMY, AOMFF, ALS.L).

GE said that in consultation with Alstom, the deadline for Alstom's board to consider its takeover proposal has been extended until June 23 from June 2. The company said it took the decision to facilitate ongoing discussions with the French government.

"The industrial project we have presented is good for Alstom, for France and for GE, and our discussions have continued to be constructive. We view this extension positively," GE said in a statement.

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.

GE said in late April that it submitted a binding offer to acquire the Thermal, Renewables and Grid businesses of Alstom for a total of $16.9 billion or 12.35 billion euros, consisting of $13.5 billion enterprise value and $3.4 billion of net cash.

The scope of the transaction includes Alstom's Thermal Power, Renewable Power and Grid Sectors, as well as corporate and shared services. Alstom has said that it is considering the proposed acquisition. French conglomerate Bouygues S.A. (BOUYY.PK), a 29 percent non-controlling shareholder of Alstom, supports the transaction.

Alstom's board has also reviewed a declaration of interest from Siemens AG (SI), and said the German conglomerate would have a fair access to information needed to make a binding offer. Siemens is supported by French officials who are looking for a European buyer for Alstom.

GE closed Thursday's trading at $26.51, up $0.02 or 0.08 percent on a volume of 15.63 million shares. ALSMY closed trading at $3.92, up $0.11 or 2.89 percent on a volume of 57.88 million shares.