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GE makes $389 million share tender offer for Alstom's India units

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Reuters NEW DELHI
Last Updated : May 05 2014 | 4:46 PM IST

NEW DELHI (Reuters) - General Electric Co on Monday made tender offers to buy shares worth up to $389 million in two of Alstom SA's India units to comply with local rules, following its $16.9 billion bid to buy the French group's energy unit.

GE has offered to buy 25 percent in Alstom T&D India Ltd from public shareholders at 261.25 rupees a share in a deal valued at up to $278 million, according to a notice issued to Indian stock exchanges by the offer manager Credit Suisse.

GE is also seeking to buy 26 percent of Alstom India Ltd at 382.20 rupees per share for up to $111 million, said a separate filing. GE will proceed with the offers only if its bid for Alstom's energy arm goes through, the filings said.

Cash-strapped French engineering group Alstom said last week it would explore a $16.9 billion offer from General Electric for its energy arm while leaving the door open to a rival bid from Germany's Siemens .

Shares in Alstom T&D India ended down 0.42 percent, while Alstom India gained 1.5 percent.

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, requiring the U.S. group to launch tender offer as per Indian market rules.

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($1 = 60.2100 Rupees)

(Reporting by Devidutta Tripathy and Abhishek Vishnoi; Editing by Gopakumar Warrier)

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First Published: May 05 2014 | 4:19 PM IST

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