Siemens offer for Alstom seemingly sweeter
As it stands now, most analysts believe Siemens AG (ADR) (NYSE:SI)’ offer is likely to be perceived as the better of the two. This means the pressure is on General Electric Company (NYSE:GE) and GE CEO Jeffrey Immelt to sweeten their bid as well.
Siemens AG (ADR) (NYSE:SI)’s proposal values Alstom SA (EPA:ALO) (OTCMKTS:ALSMY)’s energy business between $14 and $15 billion. The deal also calls for locating the global headquarters of key power-generating operations in France. Siemens also offered to leave sensitive technology—Alstom develops software used to operate nuclear plants—in French hands. The bulk of the Siemens deal would be trading a significant portion of its rail-transport business to Alstom in return for the French firm’s energy assets.
Alstom SA (EPA:ALO) (OTCMKTS:ALSMY)’s energy assets represent around 70% of the company’s value, with the rail-related enterprises comprising the remaining 30%, so adding Siemens’ rail businesses could provide some synergies.
Montebourg is economic nationalist
French economy and production minister Montebourg is known as left-wing idealist and a man of great energy and purpose. He actually ran against French PM Hollande inb the 2011 Socialist party primaries and put on a very strong showing. Political analysts say his political popularity is why Hollande included Montebourg in his cabinet.