(Reuters) - Germany’s Siemens and Japan’s Mitsubishi Heavy Industries (MHI) presented a joint offer to France’s Alstom on Monday that included 7 billion euros ($9.53 billion) in cash, challenging a General Electric bid.
Following are details of the competing proposals:
- MHI to create three joint ventures by acquiring 40 percent of Alstom’s Steam and Nuclear business, 20 percent of Grid business, 20 percent of Hydro business. MHI to inject 3.1 billion euros in cash into Alstom as a result.
- MHI to offer to acquire up to a 10 percent stake in Alstom from Bouygues to become “stable and long-term shareholder” of the French firm.
- MHI to enter various cooperation agreements with Alstom, for instance in research & development or common procurement.
- Siemens to acquire 100 percent of Alstom’s gas business for 3.9 billion euros in cash.
- Siemens to offer job guarantees for three years in France and Germany for employees of transferred gas business. Says MHI/Alstom alliance will enable creation of more than 1,000 jobs.
- Siemens to establish its European headquarters for the combined gas service business in France.
- Siemens to explore possibility of creating a European rail champion, says prepared to become long-term anchor shareholder in a combined Transport business.
- Offer includes Alstom’s thermal power, renewable power and grid businesses, as well as services (maintenance). With 65,000 employees, these businesses registered 14.8 billion euros in sales last fiscal year.
- GE’s offer values Alstom’s power arm at 7.9 times pro forma earnings before interest, taxes, depreciation and amortization (EBITDA) and is based on an enterprise value of $13.5 billion and $3.4 billion of net cash.
- Alstom has backed GE’s offer. Considered by many analysts too small to survive alone in a tough energy sector, Alstom said a GE deal would allow it to re-focus on transport including making TGV high-speed trains.
- French conglomerate Bouygues, Alstom’s top shareholder with a 29 percent stake, has said it backs Alstom’s strategy and pledged not to sell its shares until the deal wins final approval of shareholders.
- The government has already secured a pledge from General Electric to create 1,000 new jobs in France within three years of a deal, but Finance Minister Michel Sapin said on Sunday he expected the U.S. conglomerate to further improve its offer.
- GE Chief Executive Jeff 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. GE is also considering a tie-up in rail signaling that would give Alstom control of that business, he said.
($1 = 0.7345 Euros)
Compiled by Jonathan Gould, Natalie Huet and Maria Sheahan, editing by David Evans