The board of directors of Alstom received, on June 20, 2014, an update to the offer from General Electric (GE) to acquire the power and grid businesses of Alstom and a revised proposal from Siemens and Mitsubishi Heavy Industries.
The ad hoc committee of independent directors led by Jean-Martin Folz, thoroughly reviewed, on multiple occasions, the proposed transactions and unanimously decided to issue a positive recommendation of the US conglomerate General Electric's €12.35 billion (US$16.8 billion) bid to acquire its energy business.
GE's original offer entailed a clear-cut cash buyout of Alstom's power business, the new proposal calls for the two companies to set up three 50-50 joint ventures: one for the power grid businesses, another for offshore wind and hydro-power operations, and a third for nuclear steam turbines.
In addition, the French State would hold a preferred share giving it veto and other governance rights over issues relating to security and nuclear plant technology in France.
Siemens and Mitsubishi Heavy Industries revised proposal was that the JV would acquire Alstom’s gas business for an equity consideration of €4.3 billion, a €400 million improvement versus the initial proposal. Mitsubishi Heavy Industries would buy a 40 percent equity stake in the combined steam, grid and hydro business of Alstom through one single holding company, for a consideration of €3.9 billionn. In addition, Siemens would offer to enter into an up to 50/50 Joint Venture with Alstom in Signaling and Mobility Infrastructure.