Alstom GC is considering a proposal to acquire its energy business by GE and the establishment of an independent major player in the market of railway transport

Alstom's Board of Directors announced the receipt of a proposal from General Electric (GE), relating to the acquisition of the energy business. The proposal covers the heat energy sector, renewable energy and equipment for electricity (grid), as well as corporate and service control . Currently, all of these business units employing 65 thousand employees and sales in 2012/13 financial year amounted to 14.8 billion Euros. Energy business are encouraged to purchase at a fixed price , which is the cost of equity of 12.35 billion Euros and a market capitalization of EUR 11.4 billion or 12,2 x operating profit for fiscal year 2013 .

If the offer is accepted , the company will focus on its Alstom transport business in which it is the world leader . Alstom direct revenue from the sale of the vehicle strengthens the business and its active development , as well as repays debt and returns cash to shareholders.

Board of Directors unanimously confirmed the strategic and operational benefits of the proposal and openly announced the offer by GE, decided to establish a committee of independent directors , headed by Jean- Martin Folz . The Committee shall consider the proposed transaction before the end of May, taking into account the interests of all shareholders and, in particular, the Government of France. Patrick Kron and committee members will work closely with representatives of the French government to take into account their views.
In the case of a positive decision before the conclusion, the contract will be consulted with the representative organizations of workers Alstom.

Transaction will be concluded in accordance with the law on mergers and other regulations. In accordance with the Code AFEP-Medef (French Association of private enterprises - enterprises Movement France ) for listed companies , information about the final approval of the transaction will be transferred to shareholders. Company Bouygues, which owns 29% percent stake in Alstom, has made a commitment not to sell its stake to a final decision on the deal and said it would follow the recommendations of the Board of Directors of Alstom.

In the context of a firm offer , Alstom does not request a third-party offers full or partial acquisition of its energy business , but the company reserves the right to respond to the proposals received for the acquisition of all of the energy business and negotiate with potential buyers , demonstrating the strong interest that may complete a good deal for Alstom. If the Board of Directors supports another bid after approval of the proposal GE, following its analysis, , Alstom will have to pay GE a penalty in the amount of 1.5% of the transaction amount .

In addition, the Board of Directors will consider the declaration of interest , arrived from Siemens and analyze the possibility of an alternative transaction. If needed, Siemens will have full access to the information necessary for the formation of a firm offer . This proposal will take into account the corporate interests of Alstom and the interests of all shareholders, in accordance with the commitments undertaken .

Patrick Kron , Chairman and CEO of Alstom, said : "Combining the complementary activities of companies Alstom and GE will create a more competitive company that can better meet customer needs . Alstom staff will join in the well- known company with a worldwide reputation, invest in people and technology to support the long-term energy market players worldwide. proposed acquisition will allow the company to concentrate fully on his transport business , having a solid financial reserve, and use all the dynamic market of railway transport .

GE's strong position will allow the full potential of employees and business energy technologies. A GE and Alstom Energy have complementary products in the production and distribution of electricity .

In thermal power Alstom and GE have complementary solutions regarding the production technology of steam and gas turbines. Alstom company will contribute its expertise in the field of auxiliary equipment for power generation and delivery of turnkey projects that improve energy offers the combined entity;
• In wind power Alstom has competitive offers for marine plants , with a small market share in equipment for onshore wind farms , while GE focuses mainly on coastal wind farms ;
• In hydropower Alstom is a major global player, while GE in this sector generally is not present;
• In the field of power engineering service for only a broad range of products ideally suited to Alstom global presence of GE.
• In the field of electricity transmission Alstom and GE offer complementary products and solutions.

Combining energy business Alstom and GE allow us to offer customers the most comprehensive and wide range of solutions, which opens broad prospects synergies and expanding the capabilities of their technology investments.

Alstom will remain a listed company with a focus on transportation

Transport business company headquartered in St. Ouane reached in 2012/13 fiscal year sales of 5.5 billion Euros. It is represented in 60 countries and has 27 thousand employees, including 9 thousand in France.

Born one hundred years ago as a company specializing in the field of transport, Alstom Transport is now the world leader in the supply of equipment, systems, services and signaling devices for urban, suburban, regional, passenger and freight rail transport.

The proposed transaction will allow the company to focus again on the transport business and reach the Paris stock exchange. It will also strengthen the financial position of Alstom Transport in the growing market, building on a solid foundation, based on economic growth, increasing urbanization, and environmental concerns. The current leadership of the company and the reliable shareholder company Bouygues is a successful combination, which will further ensure Alstom Transport favorable conditions for further growth.

" Thanks to the recognized technological leadership , global industrial presence and sustainable financial situation , Alstom Transport will take the ideal position for further development in this dynamic market," - the president of Alstom Transport Henri Poupart - Lafarge said.