GE To Seek Partners On Alstom Assets To Win Approval : Report

(RTTNews) - U.S. conglomerate General Electric Co. (GE), which is seeking approval from France's government for its $17 billion Speed-train maker Alstom SA (AOMFF.PK, ALS.L) energy bid, is in early-stage talks with nuclear-plant maker Areva SA (ARVCF.PK) and other French companies about asset sales or partnerships, bloomberg reported citing people familiar with the matter.

The report indicated that GE is awaiting direction from the French government to see if it must sell assets to get the deal done. GE is exploring concessions, including entering ventures in areas from nuclear power to wind-turbines to rail signaling, while it seeks clarification on what would appease the state.

The report also said that French companies have been contacting GE in anticipation of the government asking for asset sales or partnerships before approving the deal, though GE would prefer not to sell anything. The U.S. company is holding talks because it's willing to be flexible.

German conglomerate Siemens AG (SI) is weighing a possible counterbid for Alstom's thermal, renewables and grid operations, which make and service products from gas turbines to power transmission equipment. Siemens may decide as early as this week on an improved offer, contingent on sufficient access to Alstom's books and management, the report said.

In Late April, General Electric said that it submitted a binding offer to acquire the Thermal, Renewables and Grid businesses of Alstom SA consisting of $13.5 billion or 9.9 billion euros enterprise value and $3.4 billion or 2.5 billion euros of net cash, totaling $16.9 billion or 12.35 billion euros.