Alstom denies rumours of GE takeover

Speculation is rife about potential $13 billion deal

French turbine and train maker Alstom has denied rumours that it is to be acquired by General Electric.

Alstom said: “We are not informed of any potential public tender offer for the shares of the company.”

The Alstom statement is in response to press reports that GE is set to announce a $13 billion (£7.7 billion) bid to take over the company as early as next week. The deal would give GE control of Alstom's high-speed TGV trains and rail-signal technology.

The move has the support of Bouygues, Alstom's biggest shareholder with a 29% stake, according to reports. A Bouyges spokesperson was not available for comment, while a GE spokesman declined to comment.

At the time of writing, Alstom share price had risen by 13% following the takeover reports.

However, any deal could face difficulties as French governments have a long history of blocking foreign takeovers of key domestic companies, claiming that they are of vital strategic importance to the country. Last year, Paris refused to give the go-ahead to Yahoo's takeover of the French video-sharing site Dailymotion.