Alstom to Distribute EUR3.5 Billion to EUR4 Billion to Shareholders From Asset Sale
November 13 2014 - 2:58AM
Dow Jones News
By Inti Landauro
PARIS-- The board of French engineering firm Alstom SA (ALO.FR)
late Wednesday recommended distributing to shareholders between 3.5
billion and 4 billion euros ($4.36 billion and $4.98 billion) from
the proceeds of the sale of most of its power equipment business to
larger rival General Electric (GE).
According to an agreement signed between both companies earlier
his year, General Electric offered to pay EUR12.35 billion for most
of Alstom's division that manufactures heavy equipment for power
plants.
In a statement released Wednesday evening, Alstom's board
recommended that the company use two thirds of the proceeds from
the sale to clear its balance sheet.
The maker of French signature bullet train plans to concentrate
on its rolling stock manufacturing business as its power division
has suffered over the past few years as a result of stagnant demand
from electricity utilities.
Write to Inti Landauro at inti.landauro@wsj.com
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