Siemens, Mitsubishi Sweeten Alstom Power Offer

PARIS (The Deal) -- Siemens and Mitsubishi Heavy Industries on Friday improved their offer for Alstom's power unit, adding 1.2 billion euros of cash ($1.6 billion), proposing a signaling joint venture and simplifying the structure of post-deal joint ventures in an effort to see off rival bidder General Electric (GE).

The new proposal includes a 400 million euros increase in Siemens offer for Alstom's gas turbine unit, taking its bid to 4.3 billion euros. The Munich-based company will also immediately launch a joint venture coupling its transport signaling operations with Alstom's equivalent unit and reiterated an offer to pursue a train manufacturing partnership.

Mitusbishi offered to increase its bid by 800 million euros to 3.9 billion euros in return for 40%, instead of 20%, of Alstom's power grid and hydro business, which it will buy alongside an unchanged 40% of Alstom's steam turbine business.

Mitusbishi's changes "will significantly simplify the implementation of the transaction, as this investment may now be undertaken through one single holding company, as opposed to three JV's as contemplated," the bid partners said in a statement.

The changes come just three days ahead of a deadline for Alstom to choose between its suitors.

Fairfield, Conn.-based GE on Thursday tinkered with its offer, adding a rail and nuclear energy alliance, joint ventures in renewable energy and power grid operations. It also offered to sell its signaling business to Alstom. GE CEO Jeff Immelt didn't put a figure on the new offer but it is sure to involve a reduction in GE's cash offer of 11.4 billion euros made on April 26.

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