GE To Keep Alstom Nuclear Operations In France : Reports

(RTTNews) - Diversified conglomerate General Electric Co. (GE), seeking France's approval for its $16.9 billion bid to acquire the energy assets of Alstom SA (ALSMY, AOMFF, ALS.L), will keep the power-equipment maker's nuclear operations in France, according to reports.

Clara Gaymard, head of GE's business in the country, reportedly said "We will answer the government's legitimate demands that the nuclear unit remain French, that intellectual property stay French and that exports be protected."

French President Francois Hollande and Economy Minister Arnaud Montebourg have been vocal in calling on GE to improve its offer to buy Alstom. Hollande has said the bid is "not acceptable" and has called for stronger jobs guarantees, while Montebourg has publicly stated a preference for a proposal from Siemens AG (SI).

Montebourg signed a decree this month giving authorities the power to block some foreign takeovers, including in the energy industry. Siemens may decide this month on a formal offer, people familiar with the situation said last week.

GE Chief Executive Officer's Jeffrey Immelt said last week that he's confident the U.S. company can complete the acquisition, which he expects to close next year. GE's CEO will meet Hollande on May 28.

On Thursday, General Electric said, at the request of the French government, it has agreed to extended the deadline by three weeks for its $16.9 billion bid to acquire the energy assets of French speed-train maker Alstom SA.

GE noted that in consultation with Alstom, the deadline for Alstom's board to consider its takeover proposal has been extended until June 23 from June 2. The company said it took the decision to facilitate ongoing discussions with the French government.

GE said in late April that it submitted a binding offer to acquire the Thermal, Renewables and Grid businesses of Alstom for a total of $16.9 billion or 12.35 billion euros, consisting of $13.5 billion enterprise value and $3.4 billion of net cash.

The scope of the transaction includes Alstom's Thermal Power, Renewable Power and Grid Sectors, as well as corporate and shared services. Alstom said that it is considering the proposed acquisition. French conglomerate Bouygues S.A. (BOUYY.PK), a 29 percent non-controlling shareholder of Alstom, supports the transaction.

Alstom's board has also reviewed a declaration of interest from Siemens, and said the German conglomerate would have a fair access to information needed to make a binding offer. Siemens is supported by French officials who are looking for a European buyer for Alstom.