Alstom chooses GE!

Alstom India had hit a new 52-week high on Friday at Rs.590.60 and today it went to an intra day high at Rs.570 though it has now cooled off, quoting at Rs.558 levels, up around 2%.

The stock is in the limelight as there is now some emerging clarity on this tug-of-war between GE and Siemens and Mitsubishi. The company has today issued a Press Release stating that the French will buy a 20% stake in Alstom from construction giant Bouygues SA. This means now that GE won the battle, with the French Govt agreeing to the terms of GE’s main shareholder but with a few conditions.

Under the agreement with Alstom, GE has agreed to sell its railroad signal business to the French company for about $825 million. The deal also includes setting up three 50:50 JVs – one for the power grid businesses, another for offshore wind and hydro-power operations, and a third for nuclear steam turbines. GE is hoping that once all the stakeholders give their approval, the acquisition of Alstom’s energy unit should close sometime next year.