PARIS--French Prime Minister Manuel Valls has signed a decree
giving him extended authority to block foreign takeovers of
companies deemed strategic, a move that could strengthen the
government's hand in the battle for Alstom SA's energy assets,
sought by General Electric Co.
In a two-page decree published in France's Official Journal on
Thursday, Mr. Valls said he aimed to better protect the country's
security interests by enlarging the scope of sectors in which
foreign investors must seek prior government approval to buy French
businesses.
The decree, which came as a surprise, adds energy, water,
transport, telecoms and health care to an existing, narrower list
of strategic sectors that included nuclear activities, encryption
technologies and vaccines.
A GE spokesman declined to comment.
The new legal tool could give French Economy Minister Arnaud
Montebourg a boost in his crusade for the independence of Alstom,
supplier of the country's signature bullet trains.
Mr. Montebourg has told Parliament he wasn't satisfied with
terms of GE's $13.5 billion cash bid for Alstom's energy
operations, and has invited Siemens AG to make a rival offer.
The German engineering company has said it was working on a
possible bid for some of Alstom's assets.
GE has said it was in talks with French authorities to improve
some aspects of its bid, which Alstom's board has endorsed
unanimously.
The decree, reported earlier by French daily Le Monde, risks
impairing recent efforts by French Socialist President François
Hollande to win over investors--at home and abroad--with a series
of pro-business overtures. But days ahead of European parliamentary
elections in which nationalist parties are expected to make a
strong showing, the decree could also help Mr. Hollande show he is
standing by Alstom, a pillar of France's industry.
Write to David Gauthier-Villars at
David.Gauthier-Villars@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires