Mumbai: US giant General Electric's (GE) open offer for shares in two India units of French engineering major Alstom SA, ran into problems Tuesday with French President Francois Hollande saying GE's $16.9 billion bid for Alstom's energy business was “not acceptable”.
In a comment unusual for a head of state to make on a private business deal, Hollande told some French radio and TV channels that “the (GE) offer is not sufficient and not acceptable”.
GE Monday made an open offer to buy 25 percent shares in Alstom T&D India Ltd., and 26 percent of Alstom India Ltd., worth in total up to $389 million, only if its bid for Alstom's energy arm goes through.
Cash-strapped Alstom SA said last week it was studying GE's offer to pay $16.9 billion, including net cash, for Alstom units that make steam turbines and energy grid products.
The French president, however, told the media that both offers for Alstom, including one from Germany's Siemens AG, required improved proposals on the jobs creation aspect.
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.