PARIS--A top Siemens AG executive said Tuesday the company will
file an official bid for Alstom SA's power-equipment business by
June 16 at the latest, upping the ante in the battle with General
Electric Co. for the bulk of the French engineering company.
"Siemens has been carrying out an in-depth due diligence for
three weeks, " Christophe de Maistre, the chief executive of
Siemens' French unit, told a committee hearing in the French
Parliament. "Our industrial project will take the shape of an
alliance between Alstom and Siemens."
The German company would bring to the alliance all its rolling
stock business, Mr. de Maistre said, adding the operation would
spawn two separate companies in power equipment and trains that
would be able to rival the world's largest.
"The capacity to create two European giants of that size won't
show up twice," he said.
GE has already filed a $17 billion bid for Alstom's power
business, but it has run into hefty opposition from French Economy
Minister Arnaud Montebourg, who is pushing for jobs and
decision-making centers to stay in France. Mr. Montebourg has
pushed Siemens to form an alliance with the French company to
pursue a Franco-German power giant.
Siemens is considering adding its profitable rail
track-signaling business to the deal, Mr. de Maistre said during
the hearing. He also said the German firm is ready to guarantee
jobs in France for three years.
GE last week extended a deadline to complete its acquisition
until June 23 at the request of the French government.
GE Chief Executive Jeffrey Immelt is set to testify at the same
parliamentary committee Tuesday evening in Paris. He is scheduled
to meet French President François Hollande and Mr. Montebourg
Wednesday morning.
Write to Inti Landauro at inti.landauro@wsj.com and Eric Chalmet
at eric.chalmet@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires