Alstom snubs Siemens/MHI – report

Alstom will reject the joint bid by Siemens and Mitsubishi Heavy Industries (MHI) for parts of its energy business, according to reports in Germany this morning.

The respected Frankfurter Allgemeine Zeitung newspaper says the French group regards the offer as an unacceptable dismantling of Alstom, citing unnamed company sources.

Top management at Alstom is said to take that view because its gas turbine activities would be sold off to Siemens under the offer, and thus separated from the rest of the company.

"How could one see the foreseen separation of the gas turbine business in a different way," an Alstom source is cited as saying.

The Alstom board has already signalled its support for a straight acquisition of the group's energy interests by GE of the US.

Siemens and partner Mitsubishi Heavy Industries (MHI) on Monday proposed a €7bn ($9.5bn) arrangement that would see the German group take the gas turbine business while the Japanese company injects cash into a string of joint ventures with Alstom, becoming a minority partner.

Wind and Renewable Energy would stay 100% owned by Alstom under the plan.

The sales director of Alstom in Germany, Markus Rieck, declined to comment on the latest reports this morning when asked by Recharge.

Alstom officials in Paris have not yet responded to a request for comment.

The French government also considers both the Siemens/MHI and GE bids to be insufficient, according to sources close to French president Francois Hollande, the Reuters news agency reported.