GE Chief Immelt Goes to France to Push for Alstom Energy Deal

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Researched by Industrial Info Resources (Sugar Land, Texas)--General Electric (NYSE:GE) (Fairfield, Connecticut) Chief Executive Officer Jeffrey Immelt pressed ahead for a deal with French industrial giant Alstom (CAC:ALO) (Paris, France). Immelt made an appearance at France's National Assembly on Tuesday in an effort to persuade lawmakers who object to the proposed deal to change their minds. He said that GE's US$17 billion bid for Alstom's energy assets would protect jobs and the nation's industrial base.

"Alstom will not disappear. Through our industrial project, France will have more influence in the global power business than you do today. You will have more global impact," Immelt told the National Assembly. "We remain open to an investment by the French government in a business alliance where this can enhance our growth and competitiveness."

Immelt also met in Paris with French President Francois Hollande on Wednesday to discuss the Alstom's future. Immelt said GE would add 1,000 jobs in France, according to a person familiar with the matter, as quoted by BBC News. Alstom's energy business manufactures turbines and the infrastructure to transmit and distribute power.

GE announced last week that it would give Alstom extra time to consider the offer, at the request of the French government, pushing back the deadline from June 2 to June 23. GE employs 10,000 workers in France, compared with Alstom's 8,000 energy business employees. Alstom's work force totals about 18,000.

The French government has called on GE to offer guarantees on jobs and the nuclear business, and to allow French investors access to Alstom's wind and hydro power operations. In early May, the government issued a new decree to boost the state's veto power to block foreign takeovers of important companies. The government said better bids would preserve jobs and the country's energy independence.

French Economy Minister Arnaud Montebourg, who has veto power over the deal, is known to favor Siemens AG's approach to Alstom over the GE bid. Siemens has proposed taking over Alstom's energy business in exchange for its own transportation unit. For related information, see May 2, 2014, article - Siemens, Rolls Royce, Alstom, GE and Daimler Play High-Stakes Power Acquisition Game.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.