German industrial giant Siemens is said to be planning a rival offer for French engineering group Alstom, which is being pursued by General Electric.
"Siemens is preparing an offer," a source close to the deal told AFP news agency on Saturday, the day before GE's chief executive is due to arrive in Paris for talks with senior government officials about the deal.
Shares in Alstom were suspended from trading on Friday amid press reports GE was preparing to make a $US13 billion ($A14.04 billion) takeover bid for the French engineering group's power plants, lines and renewable energy operations.
Alstom, a highly politically sensitive symbol of engineering prowess in France and an important exporter, is facing financial pressures and its shares have fallen heavily in the last year.
The rumours drew a terse response from Paris, which last week unveiled new reforms to cut its budget deficit and boost flagging French growth.
"Alstom is the symbol of our industrial power and French ingenuity," Economy Minister Arnaud Montebourg was quoted as saying in the French press, referring to its main activities of building power stations and the French TGV high-speed train.
GE's chief executive Jeffrey Immelt is due to hold talks with Montebourg and Prime Minister Manuel Valls on Sunday, according to several sources.
