Siemens seeks Alstom talks

Germany's Siemens wants to swap its transport business for Alstom's energy assets

The French government has postponed a meeting with General Electric to discuss the US company's bid for Alstom's energy business, saying it wants to examine a separate proposal from Germany's Siemens.

According to media reports, Siemens has proposed the creation of two European industrial champions: one in energy that will be controlled by Siemens and another in transport, which Alstom would own.

Siemens proposes acquiring Alstom's thermal power, renewable power and grid divisions under the non-binding asset-swap, according to reports.

In return it would sell its high-speed train and locomotive business to Alstom, as well as providing a cash offering to Alstom shareholders.

Siemens said: “We have submitted a letter to the board of Alstom to signal our willingness to discuss future strategic opportunities. No further comments will be made at this time.”

General Electric made a $13 billion bid for Alstom last week, sending the French firm's share price soaring by 13% on Thursday.

Alstom said that its shares would be suspended on the Paris stock exchange until the end of the month. It added that it would make a further announcement no later than the morning of 30 April.