Denver, CO 05/22/2014 (Stocksntrade) – General Electric Company (NYSE:GE) CEO Jeff Immelt has reiterated his desire to ensure a successful acquisition of power business Alstom (ALSO) despite encountering challenges with the French Government. GE continues to face huge resistance on its proposed $16.9 billion from the government thought to have encouraged German’s Siemens to become a potential bidder. Should Siemens show interest on the acquisition, the price is set to go even higher as a result of a bidding war?
Alstom Welcomes GE Proposal
Jeff Immelt has reiterated that the company could not have tabled a bid if it thought there was no chance for the deal to pass. GE plans to use the acquisition to expand its power base of turbines to broaden its presence in emerging markets. French President Entrance into the talks has considerably elicited uncertainty despite Alstom welcoming GE proposal. Alstom on its part has confirmed it is planning to give its verdict on the matter later in the month.
The French government has powers to block foreign takeovers in strategic sectors something is a concern on the completion of the takeover. General Electric Company (NYSE:GE) on its part maintains it has enough experience to work with governments and does not see any major impediments from the France government. GE has also confirmed it is talking with investors about other ventures with potential for growth.
GE Shifting Focus from its Financial Sector
Alstom deal if complete will demonstrate General Electric Company (NYSE:GE) determination to pull out of its financial sector that continues to face immense challenges. The company’s focus shifts to the industrial business that continues to generate impressive returns. General Electric expects 75% of its earnings to come from the industrial segment up from 55% last year.
Jeff Immelt has also confirmed that the company is reducing its finance exposure by planning for an initial public offering for its North America retail finance, set to take place in the third quarter. General Electric Company (NYSE:GE) has already filed for an IPO for the business.