GE offers alstom concessions to ease EU competition concerns

NEW YORK — General Electric has offered concessions to the European Union in a bid to allay concern that the 12.4 billion-euro ($13.5 billion) takeover of most of Alstom's energy business would squelch competition.

"These remedies address the concerns of the commission and at the same time preserve the economic and strategic value of the deal," Seth Martin, a GE spokesman, said Thursday in a statement. "We continue to have constructive negotiations with the commission regarding the transaction."

The plans are an important procedural step in GE's effort to win approval for its biggest acquisition ever. The company is seeking to keep its deal with France's Alstom on track after the European Commission issued a detailed list of competition concerns last month, and has said it still expects the transaction to close this year.

"We like this deal. It's our intention to really close this deal," Chief Executive Officer Jeffrey Immelt said Friday on a conference call with analysts and investors to discuss GE's earnings.

Immelt refused to give details on the concessions made Thursday or discuss backup plans if the deal isn't approved. He said in May that GE may consider selling some intellectual property linked to Alstom products but ruled out offering anything tied to service revenue streams. Fairfield, Connecticut-based GE is seeking to avoid a repeat of its failed bid for Honeywell International Inc., which was scuttled by EU regulators in 2001.

Chief Financial Officer Jeff Bornstein said any negative consequences associated with delays in the approval process would be minor.

"Generally speaking, if we didn't close Alstom the impact in 2015 would be pretty de minimis," Bornstein said on the investor call.

----Sebag reported from Brussels.


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By Gaspard Sebag

Source: The Washington Post


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