Siemens/MHI hail 'superior' bid

Siemens and Mitsubishi Heavy Industries (MHI) today claimed their joint proposal for the energy businesses of Alstom is superior “financially, strategically and socially” than an existing bid by GE of the US.

Presenting their "concept" for Alstom, the CEOs of the two companies confirmed that under their plan the Wind and Renewables operation of Alstom would remain 100% under the control of the French company.

But MHI – which already has an offshore wind joint venture with Vestas of Denmark – will inject cash to take minority stakes in the Steam Turbine, Grid and Hydro units of Alstom, as well as seeking to buy 10% of the entity as a whole.

Siemens will take 100% of the gas turbine operation of Alstom under the €7bn ($9.5bn)proposal, which the two partners said places a net equity value on Alstom Power of €14.2bn.

MHI and Siemens claimed that beats the value of the rival offer from GE by €1.9bn.

The two were at pains to stress that their proposal leaves whole swathes of Alstom’s operations under French control.

Siemens CEO Joe Kaeser said: “It is a myth that Siemens and Mitsubishi will want to dismantle Alstom,” claiming that if accepted the outcome would be a “more powerful industrial icon in France”.

Between them the two partners said they would create up to 2,000 new jobs in France, including 1,000 apprentices to be hired by Siemens.

The pair have also met unions to discuss guarantees on jobs.