Alstom Price Tag Said to Be Over $13 Billion

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April 25 (Bloomberg) -- Alstom’s board plans to meet today to discuss the potential sale of the bulk of the French builder of power plants and transmission gear to GE, according to a person familiar with the matter. Bloomberg’s Matthew Campbell speaks on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

Billion, making it the largest acquisition ever from g.e. joining us from london is matt campbell who broke that story for us.

Tell us the update.

What's this meeting going to be about?

Good morning, betty.

What we do know is that they are meeting in paris right about now, to discuss and perhaps sign off on this very large transaction with general electric.

Allison's shares were suspended in paris early this morning and they've been suspected throughout the day.

It is very close to an announcement today.

What else has been happening with the shares of alstom?

Well, yesterday, they were flying up as much as 18% at one point.

They settled up about 10% at the end of the day.

Investors do like the prospect of this deal and have really, cheered it in the market put what exactly is the deal look like?

One thing is part of alstom will be left behind, the business that makes trains and rolling stocks will be separated from the rest of the company with the energy side, which is about 70 or 75% of the company going to g.e. and the rest remain in french.

So what the new company ends up being is something investors are going to be watching very carefully.

And matt, what's been the reaction so far, if any, from the french government?

Not very good, i'm afraid, betty, as is typical whatever you have -- whenever you have something like this going on.

There have been son firm pronouncements from the french government to the effect that they'll be looking very carefully at the job impact at alternative.

The industry minister who is a very outspoken guy, sort of on the left wing saying that he plans to meet with the executives to discuss what will happen with french workers and he's looking for other solutions for alstom.

What those are, we don't know but clearly, g.e. is going to have a political battle on its hands here.

What about counterbids?

That's a very good question.

We have not seen any evidence of counterbids so far.

But g.e. has been pretty aggressive in europe over the last few years.

This has been a real challenge to seamens and a.b.b. who are big competitors of alstom and g.e., both of which are based in europe.

Again, we haven't seen evidence of this yet but it's not hard to

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

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