(Deletes extraneous letters from headline)
By Arno Schuetze and Claire Ruckin
LONDON/FRANKFURT, March 31 German private equity
group Triton looks set to buy French turbine and train maker
Alstom's heat exchanger unit, sources familiar with
the process said on Monday.
"Talks are very advanced," one of the sources said.
The Triton bid is seen as having an edge over a rival offer
by private equity firm Bain. Private equity firm Astorg was also
expected to have submitted a bid last week, another source said.
Both sources said there were still hurdles to overcome
before the deal was done.
Alstom had also attracted interest from CVC, Rhone and Onex
in the unit that comprises Air Preheaters, which makes products
used by boiler companies and utilities, and the Gas-Gas Heater
unit that makes devices salvaging heat from the flue gas of
power plants before it exits through the stack.
The offers value the unit at about 500-550 million euros
($690-$760 million), the sources said.
Bankers have prepared debt packages of about 430 million
euros or roughly 6 times its core earnings of approximately 73
million, the sources said.
Debt is likely to be in the form of senior leveraged loans
and second lien loans, they said.
Alstom, which makes high-speed TGV trains, announced
sweeping job cuts in November and said it would sell up to 2
billion euros of assets to raise cash after a tough first half
of the year.
Triton declined to comment while Alstom and Bain were not
immediately available for comment.
(Editing by Louise Ireland)