FRANKFURT--German engineering giant Siemens AG and Mitsubishi
Heavy Industries on Friday sweetened their joint proposal for
Alstom SA, after competitor General Electric Co. eased its own bid
for the French industrial firm's energy business.
Siemens and Mitsubishi said in a joint statement they had
simplified the structure of their offer to reduce complexities and
offered to inject an additional cash contribution of EUR1.2 billion
($1.6 billion) raising the total valuation of Alstom's energy
business by EUR400 million to EUR14.6 billion.
Mitsubishi now intends to buy a 40% stake in the combined steam,
grid and hydro business of Alstom, bringing the businesses under
one company as opposed to three joint ventures it previously
planned in its June 16 proposal. This raises the cash contribution
from Mitsubishi by EUR800 million to EUR3.9 billion, leaving the
valuation of the businesses unchanged.
Siemens raised its cash offer by EUR400 million, upping the
total valuation of the proposal to EUR4.3 billion. Siemens also
offers to enter immediately into a joint venture for Mobility
Management including Signaling with Alstom.
As part of the plan presented Monday, Siemens had proposed to
pay EUR3.9 billion in cash for Alstom's gas turbines business,
while MHI would inject EUR3.1 billion in exchange for minority
stakes in Alstom's steam and nuclear turbines business, grid
business and hydro turbines.
On Thursday, Siemens said it was confident about its offer for
Alstom, even after competitor General Electric sweetened its own
bid for the French industrial firm's energy business.
Write to Neetha Mahadevan at neetha.mahadevan@wsj.com
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