PARIS, June 19 (Reuters) - 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 rival proposal.
“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)