GE Stock Falls on Regulatory Concern Over Alstom Energy Unit Purchase

NEW YORK (TheStreet) -- General Electric (GE) shares are down 0.36% to $27.53 in early market trading on Thursday as European regulators prepare to warn the infrastructure and financial services company that its bid for French electricity generation and transport company Alstom's power generation unit would harm competition, according to Reuters.

GE is seeking regulatory approval for its $14 billion purchase of Alstom, but regulators are prepared to ask the company to make concessions as a condition for approval. If approved, the deal will be the largest in Alstom's history.

The EU regulatory commission has previously said that the proposed acquisition will leave Europe with just two power companies, GE and German rival Siemens (SMAWF).

GE would be willing to make concessions to satisfy regulatory concerns, according to Reuters sources.

The company is confident that the deal will close in the second half of this year, telling Reuters, "We are focused on a positive outcome that preserves the deal economics."

TheStreet Ratings team rates GENERAL ELECTRIC CO as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate GENERAL ELECTRIC CO (GE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."

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