* Siemens, Mitsubishi follow suit after GE revises bid
* Cash element of offer rises to 8.2 bln eur vs 7 bln
* MHI now offering to take bigger stakes
* Siemens also offering immediate rail JV with Alstom
(Adds further details of revised offer)
FRANKFURT, June 20 Siemens and
Mitsubishi Heavy Industries (MHI) raised their offer
for Alstom's energy businesses to compete with a
revised bid by U.S. rival General Electric.
Siemens-MHI and GE have been facing off in a battle for
control of Alstom's power businesses that has seen the Socialist
government give itself powers to block any deal in the name of
protecting local jobs and influence over a strategic sector.
Under their amended offer, Siemens-MHI would pay 8.2 billion
euros ($11.2 billion) in cash rather than 7 billion and value
Alstom's power businesses at 14.6 billion euros, 400 million
more than previously and still well above GE's 12.4 billion.
Alstom said its board of directors would convene no later
than June 23 to review the reshaped offers.
The improved Siemens-MHI proposal still foresees Siemens
buying Alstom's gas turbine business.
But MHI is now offering to buy a 40 percent stake in the
combined steam, grid and hydro business of Alstom and bundle
them in a holding company. It previously planned to create three
joint ventures by acquiring 40 percent of the steam business, 20
percent of grid and 20 percent of hydro.
The change will increase MHI's share of the cash payment to
3.9 billion euros from 3.1 billion. Siemens's contribution rises
to 4.3 billion euros from 3.9 billion, with the company saying
the increase was based on "a subsequent, more advanced
In addition, Siemens is offering to immediately enter into a
joint venture for mobility management, including signalling,
"MHI and Siemens continue to firmly believe that their
proposal is the best one for Alstom, its employees, its clients,
its shareholders and French national interests. Such proposal is
superior industrially, financially and socially," the two
companies said in a statement.
($1 = 0.7336 Euros)
(Reporting by Maria Sheahan; Editing by Ludwig Burger and Ryan