You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Why not warranties on hips, knees?
    When an automaker recalls defective brakes or air bags, the manufacturer’s warranty covers the costs of removing and replacing them.
  • Business at a glance
    Jai Juice, a juice bar and cafè, has opened at 1301 Lafayette St. in Fort Wayne.
  • Submissions
    Send items to Business News, The Journal Gazette, 600 W. Main St., Fort Wayne, IN 46802. Information may also be faxed to 461-8893 or emailed to lisagreen@jg.net.
Advertisement

GE bids $16 billion for French energy venture

– General Electric inched closer to buying the energy-related businesses of France’s Alstom by making a $16.9 billion bid, but rival offers and the concerns of French politicians may hold up or scuttle the deal.

GE’s bid, announced Wednesday, has been endorsed by Alstom’s board, but the board will wait up to a month to formally accept or reject it. GE would obtain the parts of Alstom that make and service electric power generation and transmission equipment. Alstom would keep its transportation division, which makes high-speed trains.

GE, which plans to phase out its Fort Wayne operations next year, values the acquisition at $13.5 billion because it will acquire $3.4 billion of Alstom’s cash if the deal closes.

But the deal is far from done. France’s government, which regularly intervenes in corporate decision making, has questioned whether selling Alstom to GE threatens the country’s energy independence and jobs. Alstom has convened independent board members to examine GE’s proposal.

Officials in France had pressed for a delay to allow GE’s German rival, Siemens, time to form its own bid. Siemens said in a statement Tuesday that it would make an offer if Alstom allowed it access to company data and allowed it to research the idea.

Alstom’s board said it unanimously recognized the GE deal’s strategic and industrial merits, and Alstom called the deal “practically perfect.”

GE CEO Jeff Immelt told investors Wednesday that Alstom contacted GE about a deal. He said the company doubted it was large and spread out enough to remain profitable in global energy long-term.

The deal would put GE back into businesses it has abandoned, including equipment that generates electricity in hydroelectric plants and with steam in coal-fired and nuclear plants.

Advertisement