Alstom at new high

Alstom India has hit a new 52-week high today morning at 528.20 and it currently remains around the same levels, up over 4%.

The stock has been in the news ever since Siemens and then GE announced plans to make a bid to take over. Yesterday, Siemens announced that it plans to buy Alstom’s gas operations and was planning to bid at Euro 3.9 billion in cash. The German company said that it was willing to transfer rail operations to Alstom after striking this energy deal and has also expressed willingness to become an achor shareholder with Alstom for all rail operations.

There is unconfirmed news that even Mitsubishi plans to bid for Alstom, planning to form 3 JVs with Alstom. It plans to buy 10% stake and is ready to inject Euro 3.1 billion in cash into the company. Alstom has denied any overtures from Mitsubishi.  This counter will remain volatile till a buyer is approved – it could be Siemens or GE or now we hear, Mitsubishi also.  The takeover of the parent will mean that equations in the Indian market for Alstom will also change.