Would France really let their TGV go to the Americans?
Thursday, April 24, 2014 - 04:31
April 24 - Reuters Breakingviews ponders the rumours that GE is in talks to buy Alstom and says the timing couldn’t be worse for the French government, politically and economically.
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Do we really imagine the team GB. Going to America that's the question of what is breaking views exhausting -- castle looking into this G owls don't story. I guess I mean this is the crux of it whether the French government. What would let this happen whether it makes economic sense. Well in an ideal world GB and oust them would be free to talk about any combination they think about. Could be in this case. As the rumor is that it would be takeover by June of the French train maker and train them to provide -- On the other hand and there's also political context. And when I suddenly getting -- honestly couldn't believe it because it comes at the worst possible moment in the current. Political and economical context and yes we are facing we're having the government your prime minister. He's trying to engineers -- Famous opening statements supply side shock that sort of wants to -- -- they're trying to reform. They're trying to -- I mean they've had some reduced to reform some of it is serious. Cutting spending. Cutting labor costs. Doing overall a very business friendly policy which proved to be hard sell its interest. Seconds. Remember we just they just agreed to a merger oath says to cement makers and -- this race closely. Which we will end up by transferring. Enough house -- basically you have with of the new merged company. That would be in Switzerland. And this is a government that has to prove proven very interventionist and the -- -- they've really been -- Because that's the -- -- for the European left -- has that industry. Fit to Chisholm you know. Only local and and let's bring him in these are only getting -- -- -- -- yeah I am I think it was last year. Tom what was said about how -- in that house well. By the economy minister yet on the other hand ArcelorMittal did happen and yes he's so that it hasn't been an industrial logic does exist as well. That what I'm saying is probably not exactly the right moment. Well wolf for of course before Boston's main shareholder almost 30% chance bleak. Which just lost its bid for it's far that will buy -- of Vivendi. It could do nice to -- adamant and imaginative to diverse and run what will put up which ought to Viles on this point guard but it's lost about 20% of its value I believe so far this year. It's up about 1415%. To an activist told -- I'm not gonna add to -- and I should've started with this but let's finish with a similar -- You've been on the phone with today you know after -- real we've been talking to -- But what is the sense you guessed it from the people in -- know about whether this will. Can't afford this -- to the general mood is. Not now. And in any case this talk about it meaning not between the two shareholders of the two boards but yes at some point some kind of public authority he's in the government since we have to be involved in terms of making sure that. If you technologies evidently you know and when they do want to oppose -- -- governments have any of you who just of course and what about letting a deal like this can afford it and and taking parts. Allred out body is teaching moments. Well -- happen. I think -- probably. General Electric. And it has done so in the past it has fault. -- -- -- I think it's. It's not like milestone for Kobe as a company as we know it currently is not a long term proposition sensible -- -- it will have to do something. Where they -- with the new European context and it hasn't to do with Siemens which was. That -- was passed through ten years ago listen as a matter of thoughts. I think they'll have to they will have to be very hard talks in Paris about -- that was not only vote. The two boats and I get. Yet many things that -- you know songs of breaking views if you wanna watch off US breaking news show twelve cities and 1730 BST every day. -- problems is a crisis.
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