France Aims for Better Deal with GE

The French government has opposed General Electric’s (GE) current bid of USD 16.9 billion for Alstom, describing it as “not good enough.“

In a letter to the American company, French economy minister Arnaud Montebourg wrote: “As it stands, we unfortunately cannot support the proposals you have made.“ He also stressed the importance of the country’s nuclear energy by retaining its technical sovereignty.

French President Francois Hollande backed Minister Montebourg saying that the government wants to get a better offer.

Responding to the letter, GE expressed its belief that its “proposal is good for France, for Alstom and GE,” adding that the company is open for dialog.

Last week, GE made an official offer of USD 16.9 billion for Alstom’s energy division.

Siemens has also expressed its interest in Alstom, but the company is yet to submit an offer, which is expected to be in the form of a swap of power and rail assets.