French firm Alstom on Wednesday said it is considering an offer of more than 12 billion euros from US-based General Electric for its power business and has also reviewed a declaration of interest from Siemens.
“The board of directors of Alstom announced that it has received a binding offer from General Electric (GE) to acquire its energy activities. The proposed price is a fixed price representing an equity value of euro 12.35 billion,” Alstom said in a statement.
The scope of the proposed GE transaction includes the thermal power, renewable power and grid sectors, as well as corporate and shared services.Proceeds from the sale will be used mainly to expand the company's transport business.”Should this offer be approved and completed, Alstom would refocus on its transport activities, for which it is a global leader. Alstom would use the sale proceeds to strengthen its transport business and give it the means of an ambitious development, pay down its debt and return cash to its shareholders,” the company statement said.Alstom, with 65,000 employees, registered sales of 14.8 billion euros in fiscal 2012-13 from the power business.