Siemens Talks With Mitsubishi on Joint Alstom Bid

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

June 12 (Bloomberg) –- Bloomberg’s Hans Nichols reports on Siemens in talks with Mitsubishi Heavy Industries about a joint bid to buy Alstom’s energy business and counter General Electric’s $17B offer. He speaks to Anna Edwards and Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Berlin.

When is the deadline for siemens to decide its next step?

It's june 16. that's what the company said.

That's monday.

That gives us some drama.

A deadline.

I know you're excited about this story as i am.

Here's the latest we have.

Mitsubishi would make the bid for the gas turbine.

And also the energy grid.

The power grid.

G.e. then would get the steam turbines.

That's important for a few reasons and namely regulatory but all this subpoena s happening in the background in the context of siemens maybe losing out on the lobbying game.

Because they don't have their bid formalized yet.

As it is, g.e. is out there lobbying.

You got the head of the water and the head of their deals, steve golme, and john flannery.

They are meeting with french officials this week and next.

This is a lobbying game.

Their argument boils down basically to three arguments.

Jobs.

Jobs.

Jobs.

The g.e. proposal has a guarantee of 1,000 new jobs inside france.

For alstom.

And it will be really interesting to see if and when siemens comes one a formal bid.

Will they have a jobs figure attached to that?

Mr.

ovand is meeting with his ministers to discuss this matter and the french government ultimately gives the green light on this.

Mark?

And hans, more of an idea about this siemens and mitsubishi bid.

Ok.

so the important thing is that siemens would not be getting the energy grid.

Right now, they have about 50% of the high voltage transmission lines in the entire european union.

And if they got this component, the grid component from alstom, they could face regulatory pressure.

But here's the interesting thing.

They're going in with a japanese company.

And we remember the line all along, especially from mr.

Monteburg, french industry minister that you wanted to have two european champions, two powerhouses.

Awfully difficult to make the pan-european argument when your partner, who's going to strengthen the bid with cash and what not.

But when your partner is actually a japanese company.

Mark?

Thanks, hans.

See you later.

Hans nichols in berlin.

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

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change