Siemens and GE Battle for Alstom

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June 16 (Bloomberg) -- Siemens is preparing a bid for Alstom SA’s energy unit that would leave it with the French company’s gas turbines while allowing partners Mitsubishi Heavy Industries and Hitachi to expand their steam turbines and hydro businesses, people familiar with the matter said. Bloomberg’s Caroline Connan and Jeffrey McCracken speak on Bloomberg Television’s “In The Loop.” (Source: Bloomberg)

Right now they are trying to present -- no siemens may pay $5.4 million in cash.

In addition to that you have the japanese companies, mitsubishi and hit touchy creating a joint venture.

The japanese companies could take minority stake in the joint venture and french government could take a stake as well.

The second phase to that bit after the energy deal, siemens could combine the business with oust him.

-- with alstom.

Alstom says this deal is too complex and they were not plannignng to separate the gas and steam turbines.

One concern is about the jobs, protecting french jobs.

According to the latest, siemens and mitsubishi would match gm's guaranteed to create 1000 jobs in the next two years.

What is your take on this deal and how compares to ge's bit?

Ge is more straightforward.

It is a more specific asset.

It leaves them with a lot of cash to build out the real business.

This one is a lot more complicated.

You have four different parties.

And there is an assumption the french government would take a stake or be involved and inject some money.

Are you going to demand or expect anything more from ge and will they up their offer another dollar per share and will they make more job commitments?

-- more job commitments.

How badly do they want this?

Drama there would be a lot of egg on his face if he were to follow part.

I think ge has played this very well.

I think they would be willing to go a little bit further given how much effort put in so far.

This is the largest to deal ge has ever done.

They have had deals fall over in the past.

I think they would go -- i think they would bend over backwards.

Julie has been looking at deals and has been monitoring the breaking news desk.

You have been monitoring medtronic's by covidien.

Covidien is a east in ireland.

It is an enormous deal and the per-share price of 9322 -- of 93.22 friday.

Covidien, even though it is domiciled in ireland, it has offices in massachusetts.

Corporate tax identity will transfer to ireland.

What this represents is a big increase in size of medtronic's medical device business.

Perhaps it would enter compete against johnson and johnson, which is the dominant force in that business, allow us to have more leverage in negotiating with hospitals and other medical providers.

That is the strategic region -- strategic reason behind this deal.

What is up with this, with u.s. companies going abroad?

14 company since 2012 have gone abroad.

Are they going just to escape our taxes?

You have two different tax issues and problems coming together.

The drawn against going to try to lower the corporate tax rate.

The other issue is all this offshore cash.

Medtronic, according to goldman sachs, has about $14 billion offshore.

They will presumably be able to use a lot of that on this particular deal.

Going forward they are not going to be taxed in the u.s. they can spend money more easily.

When you talk to him and a, they often say taxes don't have anything to do with mergers these days.

Do they have some component now?


It is not like the inversion strategy is new.

Now there is some thought that after the 2014 elections there will be a fix.

Republicans and democrats will come together in atlanta makes it harder to invert.

Those are the proposals that are out there.

The window will close on someone that wants to get outside the u.s.. people are looking to act.

Thank you so much.

Also at bloomberg news is caroline connan.

Also julie hyman.

We will get news any moment about siemens did.

-- seeman -- siemen's bid for alstom.

The bloomberg technology

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


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