Friday, December 19, 2014

The “devouring” programmed Alstom General Electric – The World

The "devouring" programmed Alstom General Electric – The World

Le Monde | • Updated | By

70% of Alstom's turnover (€ 20.3 billion in 2013-2014) will be transferred to GE

Much of the activity of Alstom set to go under the control of the US General Electric (GE) and the CEO French group, Patrick Kron already preparing minds for his future departure, citing its replacement by Henri Poupart-Lafarge, the former group finance director and now head of its pole transport.

When a general meeting Friday morning in Paris, the shareholders of Alstom, represented 64.25%, 99.2% have approved the sale of the energy division of the French group to GE, to 12.35 billion euros. The transaction, which completion is scheduled for the second quarter 2015, was subject to approval by the shareholders of the French industrial two-thirds majority of votes cast.

29.3 Owner % of the manufacturer of turbines and TGV, the Bouygues group has long indicated that “follow the recommendations of the Board” of Directors of Alstom.

As for the other they know they will be spoiled: the group announced plans to pay back to its shareholders in the form of a public offering of treasury stock 3.5 to 4 billion euros over 7 billion that would cost the giant Connecticut.

“After the conclusion of this operation, that is to say, after the distribution to shareholders [a special dividend permitted by sale of energy activities], I plan to hand. A Henri Poupart-Lafarge, if the Board of Directors following my recommendation “, said Mr. Kron in an interview with BBC , published Friday.

Read also: Alstom and the price of indecency

If the assignment will be effective until the summer of 2015, after consultation with the various supervisory authorities, it will fundamentally change the Alstom profile: 70% of turnover (20.3 billion for 2013-2014) will be transferred to GE and 65 000 employees will change cap. According to the report of the Board to the General Assembly, “390 companies registered in sixty countries” will be transferred.

Read Also: At Alstom in Belfort, the spleen of “Traction”

In addition, Mr. Kron said the amount of the fine which should have to pay Alstom to avoid prosecution for US to corruption must be fully supported by the French group with no hand can be transferred to General Electric.

We are in final negotiations with the Department of Justice US (DoJ) to reach an agreement to end the ongoing investigations “said Patrick Kron. Tuesday, Bloomberg revealed that the French TGV manufacturer and the DoJ had reached a settlement agreement providing for a penalty of $ 700 million to end criminal investigations to Alstom in the United States. Group leaders are accused of trying to pay bribes wine several Indonesian officials to obtain a contract for $ 118 million in the field of energy.



Far from the alliance “50/50″

In addition to the rail (28 300 employees and € 5.9 billion in revenue), which are not affected by the transfer Alstom must nevertheless retain shares in three joint ventures, specialized in power systems, renewable energy and nuclear power. It was one of the conditions set by Arnaud Montebourg, Minister of Economy, who did not want to a “devouring” of French by the American.

Alstom But there will be no power: GE will own “50% plus one share capital and voting rights” in two major joint ventures and “80% of capital and 50% plus two votes in voting rights “ in nuclear power, even if the state will have a” golden share “ preference share that provides additional veto rights – in the latter. The American “control the operational management” , will have the power to appoint the CEO and CFO (only the technical director will be appointed by Alstom) and cash of the three joint ventures will be ” centralized in the GE group “.

This is far from the ” covenant 50/50 “ in June touted by Mr. Montebourg to justify agreement of the State in the operation. “These joint ventures were negotiated to serve the financial interests , recognizes a close case. In time, Alstom will sell them to fund its own development in transport. “ For proof, exit provisions have already been planned: ” GE is committed to acquire all the shares held by Alstom in joint ventures, at the request of Alstom in September 2018 or September 2019 ‘, it said in the report submitted to the shareholders. The “devouring” will be effective …

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