PARIS, June 19 General Electric will
propose selling its rail signalling business to Alstom's
transport arm and have Alstom remain a shareholder of
its power grid business in an improved offer for the energy arm
of Alstom, French daily Le Figaro said on Thursday.
GE France declined to comment on Le Figaro report.
General Electric's chief executive Jeff Immelt is due on
Thursday to unveil to the French government and unions an
improved offer for the energy arm of Alstom, a source close to
the U.S. conglomerate has said of its efforts to fend off a
"He (Immelt) will offer to sell to Alstom Transport GE's
rail signalling business whose revenue is estimated at 600
million euros against 1.4 billion euros for Alstom's signalling
business," Le Figaro said without citing its sources.
"In addition it would renounce buying the whole energy
business of the French group and propose that it (Alstom) stays
as shareholder of the grid business."
Immelt told French lawmakers last month his group would set
up global headquarters for the grid, hydro, offshore wind and
steam turbines businesses in France. Immelt also said GE was
considering a tie-up in rail signalling that would give Alstom
control of that business.
The Wall Street Journal reported on Tuesday that GE was now
considering selling the unit to Alstom.
(Reporting by Dominique Vidalon; editing by Mark John)