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Alstom Accepts GE Bid for its Energy Unit -Sources

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This combination of file pictures shows a view taken on October 29, 2009 of the logo (L) of GE Energy (General Electric), a world’s leading suppliers of power generation and energy delivery technologies, in Belfort, eastern France and a view taken on March 8, 2012 of Alstom’s largest hydropower manufacturing plant (R) in the world in Taubate, about 130km east of Sao Paulo. Europe’s main stock markets rose at the start of trading on April 24, with London’s benchmark FTSE 100 index up 0.37 percent to 6,699.37 points. French industrial giant Alstom was the star performer, surging initially by 17 percent on reports that it could be bought by US titan General Electric. AFP PHOTO / SEBASTIEN BOZON / YASUYOSHI CHIBA AFP PHOTO / SEBASTIEN BOZON / YASUYOSHI CHIBA

PARIS/FRANKFURT, (Reuters) – The board of French transport-to-turbines group Alstom has accepted General Electric’s offer for its energy unit, two sources familiar with the situation told Reuters.
Both sources said GE was not in exclusive talks with Alstom, which is set to also receive an offer from Germany’s Siemens. One source said GE had offered to pay about 10 billion euros for the unit.
“Alstom’s board has accepted the GE offer, it will be examined by an independent committee,” one source close to the talks told Reuters.
“The two groups will not enter into exclusive negotiations. This means Alstom cannot go and look for other offers, but there is nothing to stop it from examining offers it receives without soliciting them,” the source added.
Earlier on Tuesday, Germany’s Siemens said it would make an offer to Alstom if given four weeks to examine its books and draw up a detailed plan to rival a move by GE.
Siemens said it had sent a letter to Alstom in the afternoon after its managing and supervisory boards had decided to make an offer.
“The prerequisite for this offer is that Alstom agrees to give Siemens access to the company’s data room and permission to interview the management during a period of four weeks, to enable Siemens to carry out a suitable due diligence,” Siemens said.
It gave no further details of its plans, but at the weekend Siemens approached Alstom with a proposal to exchange part of its train business plus cash for Alstom’s power arm. In a short letter, it had outlined its proposal worth $14.5 billion. 

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