Company News

Alstom shares surge on Siemens rail tie-up

PARIS, Sept 27 (Reuters) - Shares in French manufacturing group Alstom surged on Wednesday after German engineering group Siemens and Alstom agreed to merge their rail operations.

Alstom shares were up 7 percent in early trading, the top-performing stock on France’s SBF-120 index, touching their highest level since July 2011.

Siemens shares advanced 1.2 percent.

“Alstom shareholders are to receive two extraordinary dividends totalling 8 euros ($9.40). If successful, this deal should in our view create significant value for both parties,” Barclays analysts wrote in a research note.

Shares in French conglomerate Bouygues, which has a stake in Alstom, rose 2 percent to be the top performer on France’s benchmark CAC-40 index. ($1 = 0.8512 euros) (Reporting by Sudip Kar-Gupta, editing by Louise Heavens)