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ALSTOM

Alstom: General Electric grants Paris more time

US giant General Electric has bowed to a request from the French government to extend the deadline on its offer to buy Alstom's energy arm. Paris appears to be still holding out for German group Siemens to improve its own offer.

Alstom: General Electric grants Paris more time
The French government has been granted more time to mull over General Electric's offer for Alstom. Photo: Sebastian Bozon/AFP

General Electric said on Thursday that it has extended the deadline on its offer to buy Alstom's energy assets until June 23, in response to a request by the French government.

The US industrial conglomerate previously had given the Alstom board until June 2 to approve the $17 billion acquisition deal that has sparked a furor among nationalists and French officials.

"At the request of the French government, we have agreed, in consultation with Alstom, to extend the deadline for consideration by the Alstom board of our proposal until June 23," GE said in a statement.

"We have done so to facilitate ongoing discussions with the government. The industrial project we have presented is good for Alstom, for France and for GE, and our discussions have continued to be constructive. We view this extension positively."

GE has run into opposition from French nationalists over its offer to buy the French company's energy unit, which builds generators, turbines and transmission systems and would complement GE's own power industry division.

The unit accounts for 70 percent of Alstom's business, and would leave behind the railway equipment division that manufactures France's prized TGV high-speed trains.

Last week the French government passed a new law that would allow the government to veto unwanted foreign takeovers of major French companies, including the GE-Alstom deal. That lead to accusations of protectionism from US business leaders and Brussels.

Meanwhile, German company Siemens, a major rival of both GE and Alstom, has expressed interest and, according to French Economy Minister Arnaud Montebourg on Tuesday, is expected to make an offer for Alstom.

GE on April 30 announced that it submitted a binding offer to acquire the Alstom energy assets that had been "positively received" by the board.

SEE ALSO: Alstom intervention by French government is all 'noise'

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GE

US giant GE to pay France €50 million after creating just 25 jobs out of 1,000

The French government announced Tuesday that US industrial conglomerate General Electric will pay €50 million ($57 million) after falling short of its goal of creating 1,000 new jobs in the country.

US giant GE to pay France €50 million after creating just 25 jobs out of 1,000
Alstom employees protest in front of the France's Ministry of Finance in Paris. Photo: AFP

GE had pledged to create the jobs by the end of last year as part of its 2015 purchase of the power and electrical grid businesses of France's Alstom.

But shortly after closing the deal GE unveiled a series of job cuts across Europe as slumping oil and gas prices crimped demand for its heavy-duty turbines and other equipment.

The company had already warned last year that it wouldn't meet the target, though the new CEO Larry Culp confirmed in October that GE would “fulfil its commitments.”

It had promised to pay €50,000 for every job not created over the three-year period.

The French finance ministry said after a meeting with GE officials Tuesday that the firm had created just 25 new jobs overall, meaning it would pay €50 million into an industrial development fund.

“GE underscored the significant of its continual investments in France during the period, and noted that despite the particularly difficult business climate, the group had done its utmost to create jobs,” the company said in a statement.

It pointed to a $330 million investment in offshore wind turbines in France announced last year, which it expects to eventually create 550 new jobs.

But union sources said last month that GE was planning to cut nearly 470 jobs, at its Alstom Power Systems GE Energy Power Conversion units.

Under Culp the company has been trying to get its power operations on more solid financial footing, with plans to cut costs further and reduce debt.

Last week it posted a $574 million profit for the fourth quarter, a welcome turnaround from the $11 billion loss a year earlier. 

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