Hollande’s government has given itself the power to veto a deal on the grounds it does not want Alstom, an innovator and big employer, to sell the bulk of its business to a foreign firm without the state having a say.
It’s a crucial week for Alstom as the deadline for General Electric’s bid approaches on 23 June. Germany’s Siemens presented a joint proposal with Japan’s Mitsubishi Heavy Industries to Hollande earlier yesterday that it said valued Alstom’s power arm at €14.2bn (£11.3bn) – beating General Electric’s existing €12.4bn offer.
But Hollande’s government said it expected better offers from both companies.
Under the Siemens offer, Siemens would buy Alstom’s gas turbines business for €3.9bn in cash and Mitsubishi would buy stakes in various Alstom power activities.