GE’s CEO Immelt Make One Last Push for Alstom

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June 19 (Bloomberg) -- Sanford C Bernstein Analyst Steven Winoker discusses GE’s push to acquire Alstom’s energy assets. He speaks on “Bloomberg Surveillance.” (Source: Bloomberg)

You know this company and mr.

Immelt better than anybody else.

What does he need to do in france today?

I think he really needs to make the case that the offer put on the table by siemens and mitsubishi is so complex and really not in the best interest of french employment and alstom, frankly, that it is going to break it up at the end of the day even though it looks from the surface like it might not, that it would be more difficult for alstom to compete and at the end of the day he will end up with a weaker french entity, and that is what he will convince those folks that it is the stronger entity when combined with ge and they are willing to make the changes they need to accommodate that.

Steve, your black box on ge are legendary.

What is the common reading immelt and ge get in paris?

Are they a frenemy, are they a friend?

It is interesting, ge has one of the most successful foreign ventures in the country of france through its engine programs with saffron.

It really has been a phenomenal success story, a success story that on top of that you look at their operations in belfort, france, which i've been to a couple of times.

Those operations they bought from alstom years ago, they are also quite strong and quite competitive.

That being said, there is still it was entity and there are french who prefer a u.s. entity and those who prefer a german-japanese, natio -- german-japanese combination.

It ge can pull this off and by the energy assets from alstom, do you change your target generating -- target and your rating?

Pretty clearly what alstom would do is change the earnings growth outlook for ge's industrial businesses.

They are deploying capital that otherwise is not getting deployed.

And there is and accretive impact here.

That being said, alstom carries a huge amount of risk with it.

For those who know alstom deeply, they know that there is discussion with alstom's contracts being priced in challenging times, and the pricing puts those earnings at risk.

At the end of the day, look, ge becomes a more industrial entity , it will have a higher level of industrial earnings.

That is not to say they will have created value yet.

But this is a positive move in general, in my view, for ge.

Final question, isn't ge going to have to up its bid by $2 billion to match the other bid i mitsubishi?

Ge has made clear in a lot of discussions that they are willing to negotiate but are less flexible on pricing.

It will be tough for them to not increase the offer in some way, whether it is price or terms, to make this happen.

Talk about other flex ability they could pursue to close the deal here.

Steve, always good to have you.

Thanks for having me.

When does this trauma -- drama end?

Unless they push the deadline out once again.

Which is possible.

The ge french present operations are world class will . jobless claims that 8:30 and leading indicators after the markets open.

We also have the philly fed number.

Futures not doing a whole lot

This text has been automatically generated. It may not be 100% accurate.

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