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GE says not in talks with Toshiba about Alstom grid unit

Published 08/05/2014, 17:11
Updated 08/05/2014, 17:16
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(Reuters) - General Electric (N:GE), which wants to buy Alstom's (PA:ALSO) energy businesses, is not in talks with Japanese conglomerate Toshiba Corp (T:6502) about the French company's power grid business, a GE France spokesman said on Thursday.

The Nikkei business daily said Toshiba would offer to buy Alstom's power grid unit if GE purchased the French firm's energy businesses.

"GE is not in any discussions with Toshiba," the GE France spokesman said. "If our offer to Alstom is approved, we have no intention of selling the grid business."

Earlier on Thursday a Toshiba spokesman said: "We are always considering M&A options to forward our business and we can't deny the possibility of something happening in this area, but in regard to Alstom there is nothing concrete."

Alstom said last week it was reviewing a binding $16.9 billion offer from GE for its energy business.

Analysts have said that the acquisition would give GE a substantially greater foothold in the grid business.

Aside from the grid business, Alstom's power arm includes steam turbines and hydro power products, which GE has touted as complementary to its existing power division and as a way to offer a more complete product set to customers.

Earlier this week, French President Francois Hollande said GE's bid was not acceptable as it stands, and the government's aim is to get better offers.

(Reporting by Blaise Robinson in Paris and Lewis Krauskopf in New York; Editing by James Regan and Paul Simao)

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