General Electric (GE) is in talks to buy Alstom, with the deal being announced as soon as next week, according to a report from Bloomberg News.
Citing unnamed sources, the report claims GE may offer more than $13 billion for the French company, which would be about 25% above its current market value.
Alstom manufactures a wide range of equipment, including France’s famed TGV trains as well as products for the power generation market. Its finances have reportedly been hurt by the slow European economy, with its shares dropping 20% over the past year.
Meanwhile, better-than-expected results from its industrial divisions have boosted GE’s earnings recently. The company has enough in the bank to make a cash offer for Alstom, according to its most recent regulatory filings. GE CEO Jeffery Immelt said during the company’s first quarter earnings call that it would be looking to make acquisitions this year.
A spokesperson from Alstom denied the report, though GE representatives declined comment. Shares of GE dropped slightly on the news.
—Thomas W. Overton, JD, associate editor (@thomas_overton, @POWERmagazine).