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Siemens AG offered a swap transaction with French rival Alstom SA to create a European champion in the fields of energy and transportation, in a bid to counter an offer by US rival GE
In a letter sent to Alstom, Siemens proposed an cash deal plus asset swap to acquire Astom's units handling thermal power, renewable power and electric-grids. Siemens valued the businesses at roughly € 10 billion to € 11 billion. It also proposed to contribute significant parts of its rail systems business, which Alstom could merge with its transportation businesses. Siemens would guarantee jobs in France for at least three years. The move comes as the French government sought to slam the brakes on GE's proposed purchase of Alstom's energy businesses and said it favored a rival bid from Germany.
Source: The Wall Street Journal