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 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Asia Dry Bulk Capesize Rates Stay Flat

Rates for capesize bulk carriers on key Asian routes are set to remain in the doldrums next week, staying flat or gaining just a few cents as an oversupply of ships weighs on cargo availability,

ISC Profit Slip in Q2 2014 but Pay Dividend

International Shipholding Corporation (ISC) has announced financial results for the quarter ended June 30, 2014, summarized here: Net Loss he Company reported a net loss of $664,

BMT Oceanica Wins Major Water Corporation Bid

Marine and coastal environment specialist, BMT Oceanica (BMT), a subsidiary of BMT Group Ltd, is delighted to announce that it has won the bid to provide Ocean

Legal

Growing American Shipping Bill Introduced by Garamendi

Congressman John Garamendi (D-CA-03), Ranking Member of the House Transportation and Infrastructure’s Coast Guard and Maritime Transportation Subcommittee, informs ot the introduction of  H.

Orica Fined Heavily for Australian Pollution Incidents

Orica Australia Pty Ltd has been convicted and penalised $768,250 in relation to charges brought by the NSW Environment Protection Authority (EPA) for pollution

Canaveral Shipwreck Search Permit Granted to Seafarer's Quest

Research and recovery of historic shipwrecks experts Seafarer Exploration Corporation says that Seafarer's Quest, LLC has successfully been granted a three year

Finance

Asia Dry Bulk Capesize Rates Stay Flat

Rates for capesize bulk carriers on key Asian routes are set to remain in the doldrums next week, staying flat or gaining just a few cents as an oversupply of ships weighs on cargo availability,

ISC Profit Slip in Q2 2014 but Pay Dividend

International Shipholding Corporation (ISC) has announced financial results for the quarter ended June 30, 2014, summarized here: Net Loss he Company reported a net loss of $664,

Hornbeck Offshore Ride High on Q2 2014 Results

Hornbeck Offshore Services, Inc. has announced its financial results for the second quarter ended June 30, 2014.  Following are highlights for this period and excerpts

Environmental

Quality hat-trick for GAC Marine Logistics

Global ship spares logistics provider GAC Marine Logistics Inc. (GML) has secured ISO certifications in recognition of its Quality Management, Environmental

BMT Oceanica Wins Major Water Corporation Bid

Marine and coastal environment specialist, BMT Oceanica (BMT), a subsidiary of BMT Group Ltd, is delighted to announce that it has won the bid to provide Ocean

First Panels Installed at Australia’s Biggest Solar Plant

The Australian Renewable Energy Agency today celebrated a major milestone with the installation of the first solar panels at AGL’s large-scale solar plant in Nyngan, NSW.

Energy

First Panels Installed at Australia’s Biggest Solar Plant

The Australian Renewable Energy Agency today celebrated a major milestone with the installation of the first solar panels at AGL’s large-scale solar plant in Nyngan, NSW.

Exxon Mobil Corporation Declares 3Q Dividend

The Board of Directors of Exxon Mobil Corporation yesterday declared a cash dividend of 69 cents per share on the Common Stock, payable on September 10, 2014 to

FortisBC Set to Expand its Tilbury LNG Facility

FortisBC Energy Inc. today selected Bechtel Canada Co. (Bechtel) as the contractor for its Tilbury LNG Facility Expansion Project in Delta, B.C. (Project). The

News

Quality hat-trick for GAC Marine Logistics

Global ship spares logistics provider GAC Marine Logistics Inc. (GML) has secured ISO certifications in recognition of its Quality Management, Environmental

Hellfire Missile Firing a First for New Navy Helicopters

The Royal Australian Navy’s newest maritime combat helicopter, the MH-60R Seahawk ‘Romeo’, has successfully fired its first ‘Hellfire’ missile in the United States.

BMT Oceanica Wins Major Water Corporation Bid

Marine and coastal environment specialist, BMT Oceanica (BMT), a subsidiary of BMT Group Ltd, is delighted to announce that it has won the bid to provide Ocean

People in the News

ISC Profit Slip in Q2 2014 but Pay Dividend

International Shipholding Corporation (ISC) has announced financial results for the quarter ended June 30, 2014, summarized here: Net Loss he Company reported a net loss of $664,

Admiral on U.S. Navy & Asia Pacific Re-balancing Act

The commander of U.S. Pacific Command has briefed Pentagon reporters, discussing the U.S. rebalance to the Asia-Pacific region, successful engagement with partners

DW to Present at Upcoming Floating LNG 2014, Houston

Douglas-Westwood (DW) says that its manager in Houston, Andrew B. Meyers will be joining the speakers on the platform at the upcoming 27th-30th October 2014 'Floating

Government Update

Admiral on U.S. Navy & Asia Pacific Re-balancing Act

The commander of U.S. Pacific Command has briefed Pentagon reporters, discussing the U.S. rebalance to the Asia-Pacific region, successful engagement with partners

Growing American Shipping Bill Introduced by Garamendi

Congressman John Garamendi (D-CA-03), Ranking Member of the House Transportation and Infrastructure’s Coast Guard and Maritime Transportation Subcommittee, informs ot the introduction of  H.

BOEM Extends O&G Lease Comment Period

The Bureau of Ocean Energy Management (BOEM) is extending the public comment period for the Request for Information (RFI) and Comments on the Preparation of the

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Port Authority Salvage Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1442 sec (7 req/sec)