GE bid for Alstom Power unit is rejected as Siemens prepare counter bid

The power transformer global marketplace is set to change as the $17bn GE bid for Alstom Power is rejected and Siemens prepare a counter offer.

BP 3Alstom, the manufacturer of power equipment including power transformers and the high-speed TGV trains, employs 18,000 people in France and was saved from bankruptcy by the french state 10 years ago. The company is important for the country's energy independence, the French government has said and French President Francois Hollande, who is seeking further job guarantees, has stated that GE's $17 billion offer is not good enough.

General Electric Co. (GE)'s $17 billion offer for Alstom SA (ALO)'s energy business division is not good enough, according to French President Francois Holland. The division accounts for almost three-quarters of Alstom's annual revenue.

The statement comes as Siemens AG has said it intends to submit its own bid. The German company has made a preliminary proposal to take over the power unit and transfer some of its train business to Alstom. According to Bloomberg News it is understood that Siemens AG has asked Alstom to give it the same access to its books as GE before it makes a formal offer.