Siemens Asks Alstom For More Info

Posted by Joseph R. Fonseca
Tuesday, May 20, 2014
French Economy Minister Arnaud Montebourg

 

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 is pursuing its work and has written to Alstom this morning asking for more information and a deeper understanding of Alstom, obviously with the aim to most certainly draw up a proposal," Montebourg told a parliamentary economic affairs committee on Tuesday.

"We understand its determination to be constant, serious and diligent," he said.

It was not immediately clear what more information the German company had requested. Alstom said it had given Siemens access to the same data as GE.

Siemens declined to comment.

Montebourg and the French government have criticized GE's bid, saying a sale of Alstom's power arm would weaken the once-bailed out engineering group by reducing it to its smaller transport business.

Meanwhile, Paris and Berlin have played up an alliance between Alstom and Siemens as a European alternative that would create two industry champions, one around power with Siemens and one around transport with Alstom.

Alstom has shown little interest in a deal with its longtime German rival, but a competing offer would give the French government more leverage with GE after it gave itself the power to block foreign takeovers in "strategic sectors".

Montebourg said he was still waiting to see improved detailed offers from both groups.

"I cannot prejudge which one will be the best offer," he said. "Nothing is certain; everything has yet to be decided."

WIND ASSETS UP FOR GRABS?

To address French concerns over energy independence, Siemens could offer, among other sweeteners, to hand over Alstom's wind and nuclear power assets to French state-controlled energy group Areva, two sources familiar with the talks told Reuters.

Areva CEO Luc Oursel said earlier on Tuesday his group could be interested in Alstom's wind turbines unit.

Alstom CEO Patrick Kron, who was auditioned after Montebourg by the same parliamentary committee, confirmed that talks were underway to bring together Alstom's and Areva's wind operations.

"Why not, if that helps address some stakeholders' concerns," he said, while cautioning against options that would end up "chopping up into pieces" Alstom's various businesses.

Throughout his audition, Kron continued to back GE's bid, saying it would help strengthen Alstom in the face of a power market depressed by weak demand and low electricity prices.

He warned that prolonged uncertainty over a deal could discourage clients from signing new contracts with Alstom and thus risk further weakening the business and staff morale.

He also said that if Siemens were to make a formal offer, it would be studied fairly by Alstom's board of directors. The board would consider not only the financial aspect of the bid but also its execution risk and its impact on jobs, he said.

(Reporting by Natalie Huet, Benjamin Mallet and Jean-Baptiste Vey; Additional reporting by Jens Hack in Munich; editing by Jane Baird)

($1 = 0.7302 Euros)

Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Container Equipment Costs at Record Low

Low material costs and stable demand has driven the price of new container equipment down to record lows where it is forecast to stay, according to the latest edition

KPA: Striking Mombasa Port Workers Must Return by Friday

The Kenya Ports Authority said on Thursday striking workers at the Mombasa port should resume work by Friday morning or lose their jobs, and that normal activities

Qatar Navigation Absorbs Balance of SocGen Gasships

Qatar Navigation (Milaha) said on Thursday its unit Qatar Shipping Company had acquired the remaining 60 percent interest in two firms which own Liquefied Natural

Environmental

New Monitoring Network for Scottish Ports

Historically, ferry masters operating off the west coast of Scotland would have to sail to a port and on arrival visually assess the weather and tide conditions

BMT Awarded Port Geographe Coastal Engineering Contract

BMT JFA Consultants (BMT), a subsidiary of BMT Group,  has been awarded a contract by the Western Australian Department of Transport (DoT) to provide services as

California Okays Ship Emissions Capturing System

Clean Air Engineering-Maritime (CAEM)'s emissions treatment system for ocean-going vessels has been approved by the California Air Resources Board, giving operators

News

Austal Delivers 7th Cape Class Patrol Boat

Shipbuilder Austal Limited announced it has delivered Cape Wessel, the seventh of eight Cape Class patrol boats being supplied to Australian Border Force under a $330 million design,

Silversea Cruises Orders Luxury Ship from Fincantieri

Shipbuilder Fincantieri has received an order to build a new luxury cruise ship for client Silversea Cruises due for delivery in April 2017.    At 40,700 grt and accommodating 596 guests,

Latest LCS Completes US Navy Trials

Littoral Combat Ship 6 (LCS 6), the future USS Jackson, has completed U.S. Navy acceptance trials, shipbuilder Austal Limited announced.   The trials, the final milestone before delivery,

People in the News

MOL Renames Group Ship Management Co.

Mitsui O.S.K. Lines, Ltd. announced today that effective July 2, its wholly-owned ship management company for dry bulkers, New Asian Shipping Company, Limited

TORM's Restructuring Agreement Becomes Effective

As previously reported, TORM has obtained the creditor consents necessary to implement its Restructuring through an English law Scheme of Arrangement (cf. announcement no.

WISTA Seminar on Dry Bulk Receives Wide Response

A Shipping Seminar on "Dry Bulk Chartering, Operations and Arbitration”  held on 27th June 2015 at the Narottam Morarjee Institute of Shipping, Nariman Point, Mumbai was well attended.

Government Update

Terrorists Will Exploit EU Migrant Crisis, ESC Warns

ESC Global Security has called for the Mediterranean to be classed a maritime High Risk Area in the wake of the terrorist atrocities in Tunisia and Europe’s escalating migration crisis.

KPA: Striking Mombasa Port Workers Must Return by Friday

The Kenya Ports Authority said on Thursday striking workers at the Mombasa port should resume work by Friday morning or lose their jobs, and that normal activities

Philippine Ferry Sinks, 36 Dead

A ferry carrying 189 passengers and crew capsized off the central Philippines in heavy waves on Thursday, killing at least 36 people but the majority of those on board were rescued,

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1979 sec (5 req/sec)