German industrial-machinery giant Siemens and Japan’s Mitsubishi Heavy Industries (MHI) added nearly £1billion to their offer for the energy business of France’s Alstom yesterday.
Siemens and MHI are hoping to see off a revamped bid by General Electric (GE) ahead of Monday’s deadline for a decision on the struggling company’s fate.
France’s government has said it will veto any deal that does not protect jobs and industrial know-how.
Talks involving French president Francois Hollande, ministers and bosses at both Siemens and US-based GE could seal the fate of the 86-year-old firm at the centre of one of Europe’s fiercest industrial battles.
The board of Alstom, which holds interests in the electricity generation and rail transport markets, is due to meet by Monday.
GE radically overhauled its bid on Thursday, hoping to appease unions and politicians by transforming what had been largely a straight purchase into an offer of joint ventures similar to that of Siemens-MHI.
In response, Siemens and MHI simplified the structure of their offer and raised its cash component by nearly £1billion to £6.54billion.
That values Alstom’s power businesses at more than £11.6billion, Siemens said, nearly £320million more than previously and still well above GE’s £9.9billion.
Siemens said its offer was “superior industrially, financially and socially,” and reaffirmed pledges to create new jobs in France, a commitment GE has also made.
French prime minister Manuel Valls said the offers of both sides were improving.
President Hollande’s government has congratulated itself on blocking GE’s initial advances on Alstom some two months ago and forcing it to improve its offer, not only by encouraging Siemens to enter the fray but also by signing off a decree giving itself the power to block industrial tie-ups in strategic areas.