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France

France

Alstom denies GE buyout reports

FRANCE: Alstom has denied that GE is poised to buy out the company for $13 billion, as has been reported in the press.

A takeover of Alstom would mean GE moving into offshore wind
A takeover of Alstom would mean GE moving into offshore wind

Update 25 April: according to reports in the French press, the deal is for only the energy arm of the company. Trading on Alstom shares was halted on the back of rumours of a possible deal. However, there are also reports that the deal could be scuppered by the French government.

The French manufacturer, which is a big player in the global wind energy industry, said in a statement: "In response to recent speculation in the economic press, Alstom is not informed of any potential public tender offer for the shares of the company."

But the company also said: "The group constantly reviews the strategic options of its businesses.

"Alstom plans to communicate as scheduled on 7 May its annual results and will use this opportunity to give an update on the prospects of its activities."

The response comes in reaction to a Bloomberg report based on unnamed sources that US conglomerate GE is in talks to take over Alstom, and that a deal will be announced as soon as next week.

If it does go ahead, the deal would mean GE taking on its direct competitor in the onshore wind industry, while also moving into the offshore wind market. GE vice president Anne McEntee recently confirmed that GE has no plans to develop an offshore wind offering.

Shares in Alstom jumped 14% in early trading as investors anticipated a buyout that would represent a 25% premium on its current market value.

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