LIVE: GE on $17bn Alstom bid
GE CEO Jeff Immelt is speaking live about his company's dramatic bid to acquire the energy interests of Alstom, including its considerable renewables assets. We'll bring you the key points here and on Twitter @Rechargenews
0830 US EDT: We're due to hear from Jeff Immelt, which will be a relief to the hundreds of journalists and financial analysts who have covered this story since the US group's plan to take over Alstom was first mooted last week.
Just to recap this morning's news, GE wants to acquire the energy intrests of Alstom, renewables, grid and all, in a deal worth $17bn.
The full details are here.
Immelt. GE can add a lot of value to the Alstom business. This is a unique opportunity.
GE: Transaction expected to close in 2015.
GE: These are good assets. Alstom has a growing renewables arm with leading position in hydro and onshore and offshore wind.
GE Power & Water boss Steve Bolze: "There are many things we like about Alstom."
They include offshore wind and a leading hydro position.
Bolze: "We really like the Alstom leadership team".
Opportunities to grow service business. Alstom will allow us to expand it.
Bolze: We will have a broad portfolio in renewables, including offshore.
John Flannery, SVP business development: Alstom Grid greatly enhances our offering
GE CFO: Expect to see $1.2bn of synergies by year 5. "The transaction is very atractive to us finacially"
Immelt: This acquisiton is playing to our strengths. We announce this transaction at a time when GE is performing well.
Now it's time for some questions.
Questioner asks why GE is getting back into areas, eg hydro, it previously exited.
Immelt points to advantages of scale.
Questioner asked if measures for synergy objectives are constrained by deal made with Alstom.
Immelt says there are multiple opportunities to achieve savings, many of them outside France.
Questioner: Why pursue this deal now?
GE: We've been talking since mid-February. It's a classic case of R&D, services, the things we can do well.
Financial analysts seem generally well disposed to the deal, but are mostly quizzing GE on conventional power issues.