FRANKFURT -- Germany’s Siemens and Japan’s Mitsubishi Heavy Industries and Hitachi are preparing a joint offer for Alstom’s energy business in a challenge to General Electric (GE - Get Report), according to a published media report Sunday.
Siemens and Mitsubishi Heavy announced their partnership Wednesday, promising to submit a bid to Alstom’s board by Monday, but they offered no details of how the partnership would work or what their offer would look like.
Later in the week, Japan’s Hitachi said it would work with Mitsubishi Heavy on a possible bid.
The three are preparing an offer that will give Siemens Alstom’s gas turbines and allow Mitsubishi and Hitachi to expand their steam turbine and hydro business operations, Bloomberg reported Sunday, citing people familiar with the situation.Siemens would pay cash for the gas turbines, while the two Japanese partners would combine their steam turbines and hydro businesses with Alstom’s and then take a minority stake in the entity, Bloomberg also reported.
The board of Siemens was scheduled to meet Sunday and was expected to approve the offer, Bloomberg said. Also citing anonymous sources familiar with the situation, The Wall Street Journal reported Sunday that Siemens and Mitsubishi were working on a joint offer for Alstom's energy business that they would make Monday and that would also have Siemens transfer its rail business to Alstom. A joint offer would threaten GE’s existing $17 billion offer for Alstom’s energy assets. Alstom said at the end of April that is supports GE's cash offer but would wait to see what Siemens offered. Shares of GE closed Friday up 8 cents at $27.04. Siemens Lands New Partner to Unplug General Electric From Alstom