Alstom shares jump on report of GE takeover interest

PARIS Thu Apr 24, 2014 7:28am EDT

A General Electric Company (GE) logo is seen on a toggle switch package in New York January 18, 2012. REUTERS/Shannon Stapleton

A General Electric Company (GE) logo is seen on a toggle switch package in New York January 18, 2012.

Credit: Reuters/Shannon Stapleton

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PARIS (Reuters) - Shares in Alstom jumped over 17 percent on Thursday after Bloomberg reported that General Electric (GE.N) was in talks to buy the French turbine and train maker for about $13 billion.

Shares in Bouygues (BOUY.PA), Alstom's biggest shareholder with a 29 percent stake, were 5 percent higher.

Alstom said in a statement it was not informed of any potential public tender offer for its shares and would update investors on its prospects on May 7, when it releases annual results.

"GE certainly has the means, and even an interest in the majority of Alstom's activities," a Paris-based trader said. "It's active in power, transport and grid. The price mentioned could be justified by potential synergies."

(Reporting by Natalie Huet and Blaise Robinson; Editing by James Regan)

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