GE has the support of Bouygues (BOUY.PA), Alstom's biggest shareholder with a 29 percent stake, the Bloomberg report said.īouygues would not comment beyond saying that it supported Alstom's strategy.
#GE STOCK PRICE AFTER ALSTOM WRITEDOWN UPDATE#
"GE would essentially be 'doubling down' on power generation, transmission, distribution and transportation."Īlstom, which has put its transport division up for sale in an attempt to fill a hole in its balance sheet, said on Thursday it was "not informed of any potential public tender offer for the shares of the company" and promised an update on its options when it releases annual results on May 7.Ī deal for the whole company could hand GE control of Alstom's high-speed TGV trains and rail-signal technology.
"Alstom is levered to those themes in which GE believes," Sanford Bernstein analyst Steve Winoker said in a research note. Such a power-focused deal could leave Alstom's transport business as a separate publicly listed company in Paris, the person said.Īcquiring Alstom's assets could propel GE toward its goal of increasing the earnings contribution from its core industrial manufacturing business to 70 percent from 55 percent last year, as it reduces its finance exposure. GE has bet heavily on its "power and water" segment, which is one of the conglomerate's top revenue generators along with jet engines.
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