How Badly Does Siemens Want a Piece of Alstom?

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June 16 (Bloomberg) -- Bloomberg’s Alex Webb reports on the battle for Alstom as Siemens and Mitsubishi are said to prepare a combined bid for a portion of the company and how politics and the French government play into any potential deal. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

Government has been pushing germany's siemens to make a bed.

Will this be one made under duress?

I think that ultimately the debate is something siemens wants to make, the conditions of the bid are the thing that are under duress.

How it is manifesting itself.

The fact that they are doing as a joint bid with mitsubishi shows the elements of the business that siemans wants, the gas turbines.

Ge has bid for the entire company excluding the train business.

I look at the siemens bid with mitsubishi, it is pretty complex.

Which offer would be more compelling for the french government?

At the end of the day, is that is what is going to take to make the deal, get them on board?

The thing that is different from this deal compared to others in the states, you really have to convince the french government of its validity.

They want to retain the nuclear business, which is a huge part of france's strategic thinking.

And the train business, a big part of the french identity.

Once you have convinced the french government about the fact that those businesses will remain in france, then it comes down to the shareholders and we're talking about cash.

Something about the spectacle of jeff immelt and ge going in front of the french national assembly and promising to retain jobs.

One of the things i'm having trouble understanding, is this important for the french economy?

Or is it just important to the government?

To hollande, who has had a really bad year.

Is a political question.

A strategic, economic question.

The really loud voice has been the economy and industry minister.

One of the more left-wing members of the french administration.

He's really trying to make a name for himself.

What is ge's response?

Where is it likely to be flexible -- high stack, john guarantees, joint ventures -- price tag, joint guarantees, joint ventures?

I think there is bonds ge can think of, jeff immelt alluded to it in front of french lawmakers and spoke about giving the rails signaling business to alstom.

The siemens cash offer was reportedly about $4 billion from the siemens upside, and almond from mitsubishi as well.

Job guarantees and giving business to a french economy in terms of units, which will remain friends, those will be the fiscal elements -- the two helmets.

If you are a ge or alstom sh areholder, which is more compelling?

The argument siemens has made is that if alstom is left as just a trail maker, what the ge deal would do, it would be hard.

This has been a lossmaking business, even if they get control of the siemens train business, siemens is thinking about offering alstom its trains business to combine them.

It will not be able to get the financing to build these trains.

They valuable assets will not be part of alstom anymore and that raises questions for bondholders.

Something way will monitor.

Official bid could come in the next couple hours from

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


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