GE looks to avoid bidding war for Alstom

US industrial giant General Electric wants to avoid a
bidding war for France-based company Alstom, despite a rival bid from Siemens and Mitsubishi.

According to Sky News, GE has offered $US17 billion ($A18.4
billion) for the Alstom energy unit, which builds generators, turbines and
transmission systems and, according to an email from GE spokesman, is confident
that the offer represents a good deal for all parties.

The rival bid from Siemens and Mitsubishi Heavy
Industries is for Siemens to buy Alstom’s gas turbine business for 3.9 billion
euros ($A5.9 billion) in cash; and for Mitsubishi to inject 3.1 billion euros
in cash into Alstom and offer to acquire up to a 10 per cent stake from Alstom
shareholder Bouygues.

A person close to GE told Reuters the company is talking to
the French government about possibly changing terms of the bid not related to

The GE bid has been met by some opposition in France because
of fears that jobs may be lost and Alstom’s business activity may slow.

According to the Reuters source, GE is addressing these
issues in its talks with the government. Specifically, the talks are focused on nuclear technology
associated with Alstom’s steam turbine business.