Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

GE makes $389 million share tender offer for Alstom's India units

Published 05/05/2014, 06:17
Updated 05/05/2014, 06:32
ALSO
-
GE
-
NSEI
-
GETD
-

NEW DELHI (Reuters) - General Electric Co (N:GE) on Monday made tender offers to buy shares worth up to $389 million (230.54 million pounds) in two of Alstom SA's (PA:ALSO) India units to comply with local rules, following its $16.9 billion bid to buy the French group's energy unit.

GE has offered to buy 25 percent in Alstom T&D India Ltd (NS:ALST) from public shareholders at 261.25 rupees a share in a deal valued at up to $278 million, according to a notice issued to Indian stock exchanges by the offer manager Credit Suisse.

GE is also seeking to buy 26 percent of Alstom India Ltd (NS:ALSM) at 382.20 rupees per share for up to $111 million, said a separate filing. GE will proceed with the offers only if its bid for Alstom's energy arm goes through, the filings said.

Cash-strapped French engineering group Alstom said last week it would explore a $16.9 billion offer from General Electric for its energy arm while leaving the door open to a rival bid from Germany's Siemens .

Shares in Alstom T&D India were up 6.4 percent at 289.15 rupees, while Alstom India lost early gains and were trading down 0.8 percent at 452 rupees at 0504 GMT. The broader index DE:NSEI was up 0.28 percent.

GE will indirectly acquire Alstom's 75 percent stake in Alstom T&D and 68.6 percent in Alstom India, if its bid to buy the French group's energy unit is successful, requiring the U.S. group to launch tender offer as per Indian market rules.

(Reporting by Devidutta Tripathy and Abhishek Vishnoi; Editing by Gopakumar Warrier)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.