NEW YORK (TheStreet) -- Shares of General Electric Co. (GE) are currently flat on heavy trading volume as France's government has backed a bid by GE for the country's struggling Alstom engineering group.
But the government seeks to maintain control over the firm by taking a 20% stake, according to Deutsche Welle.
An announcement was made by the French Economics Minister Arnaud Montebourg today.
Paris would buy the stake from French building company Bouygues, which owns 29% of Alstom, Montebourg added.
The move will make the French state the biggest shareholder in Alstom and will deal a setback to GE and a joint effort by Germany's Siemens (SIEGY) and Japan's Mitsubishi Heavy Industries (MHVYF), which have made offers to take over Alstom's power business, Deutsche Welle said.
Montebourg also said that the government was nevertheless in favor of the bid made by GE, adding that GE still needed to improve its offer.
TheStreet Ratings team rates GENERAL ELECTRIC CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL ELECTRIC CO (GE) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."