Natalie Huet News

Workers at France-Corsica ferry operator SNCM must end their strike and let the troubled company undergo a restructuring to secure its future, Prime Minister Manuel Valls said on Tuesday. Loss-making SNCM, whose unions have been on strike since June 24, risks bankruptcy and needs to be placed under court protection, Valls told TV station TF1 in an interview. "This situation cannot go on and there needs to be a court-ordered restructuring, because this company is sinking, and in fact the days of strike that accumulate are only putting it more into trouble," Valls said. The comments were even harsher than those of France's transport minister…

Germany's Siemens and Japan's Mitsubishi Heavy Industries presented a joint offer to France's Alstom on Monday that included 7 billion euros ($9.5 billion) in cash, challenging a bid by General Electric. Under the deal, Siemens offered to buy Alstom's gas turbines business for 3.9 billion euros in cash, and MHI to buy stakes in Alstom power assets including hydroelectric power equipment and grid, to be held in separate joint ventures. MHI would inject 3.1 billion euros in cash into Alstom and offer to take a stake of up to 10 percent in the French firm from shareholder Bouygues. "Alstom would remain an independent energy and transport player with a strong brand," Siemens Chief Executive Joe Kaeser said. Alstom said it would review the proposal in the coming days.

Germany's Siemens wrote to Alstom on Tuesday asking for more information ahead of a likely offer for the French company's power business, French Economy Minister Arnaud Montebourg said. Alstom is already in talks with U.S. conglomerate General Electric over a 12.35 billion euro ($16.9 billion) bid for its power arm, which it is due to review by June 2. Under pressure from the French government, however, it has opened its books to Siemens as well. Sources have told Reuters that Siemens is working on a formal offer to swap part of its rail business plus cash in exchange for Alstom's power business, which could come as early as this week.

Siemens and the French government intervened in General Electric's plan to buy the power arm of Alstom on Sunday with an alternative European "champions" tie-up proposal and a pledge to act inFrance's national interest. Though French trains-to-turbines maker Alstom is privately owned, firebrand Economy Minister Arnaud Montebourg issued a stark reminder of the influence the government holds over a company that relies heavily on orders from state rail operator SNCF and partly state-owned utility EDF. "GE and Alstom have their calendar, which is that of shareholders, but the French government has its own, which is that of economic sovereignty," Montebourg said in a statement, providing the first official confirmation of GE's offer.

French engineering firm Alstom said on Sunday it would continue to reflect on its future until Wednesday and that it had requested trading in its shares remain suspended until then. The statement from the company follows news of an offer from U.S. giant General Electric to buy its power arm, and of a potential alternative proposal from German group Siemens . The French government also intervened on Sunday to express concerns about jobs and other issues of national interest. The turbine and train maker's statement did not mention any of these issues, saying only that "Alstom continues and deepens its strategic reflection and will make a further announcement no later than Wednesday 30 April morning. Alstom's shares were suspended from trading on Friday at the request of market regulator AMF.

French President Francois Hollande gathered ministers on Sunday evening to discuss the case of struggling engineering firm Alstom, with jobs, location of activities and energetic independence in mind, his office said in a statement. The French government and Germany's Siemens intervened in U.S. giant General Electric's plan to buy Alstom's power arm earlier on Sunday by offering an alternative tie-up between European "champions" and a pledge to act in France's national interest. A spokesman for the president's office said the ministers' meeting was now over and that it planned to release another statement on the subject by Monday morning. (Reporting by Natalie Huet; Editing by Andrew Callus)

Alstom's arch rival Siemens wants talks with the struggling French engineering group, the German company said on Sunday, the day General Electric boss Jeff Immelt is due in Paris to thrash out a deal to buy Alstom's global power arm. Siemens said in a statement that it had written a letter to "signal its willingness to discuss future strategic opportunities" with the French group. France's government has said it wants to find alternatives to the GE offer, which sources say puts a value of $13 billion on the turbines and power grid equipment business and could be announced in days. Economy Minister Arnaud Montebourg said last week that he plans a meeting with Immelt.

U.S. industrial conglomerate General Electric Co is in advanced talks to buy the global power division of struggling French engineering group Alstom SA for about $13 billion, sources familiar with the matter said on Friday. Sources said a deal was backed by Alstom's main shareholder, French conglomerate Bouygues with 29 percent, and could be announced in the coming days after an Alstom board meeting on Friday afternoon. The board was due to meet again on Sunday to discuss the transaction, French daily Le Figaro said. "Talks are going ahead swiftly, the deal's structure is defined and everything is almost ready," one of the sources said. Alstom Chief Executive Patrick Kron confirmed to union representatives there were talks about an "industrial deal," but did not name GE.

General Electric is in talks with Alstom to take over its global power business and a deal could be announced in the coming days, two sources familiar with the matter said on Friday. No price tag was given for the deal, which could be announced in the coming days, according to the sources. The power business accounts for nearly three quarters of Alstom's 20.3 billion euro revenue. One of the sources said the approach was initiated by Alstom and that its top shareholder Bouygues - which has a 29 percent stake - backed the proposed deal. Alstom declined to comment. Bouygues could not immediately be reached for comment. Reporting by Matthieu Protard, Benjamin Mallet; and Natalie Huet