Popular News From Popular Sites: France grabs for power over Alstom future with new takeover law

Thursday, May 15, 2014

France grabs for power over Alstom future with new takeover law

The logos of French power and transport engineering company Alstom and US conglomerate General Electric are pictured at the site of the companies in Belfort By Jean-Baptiste Vey and Benjamin Mallet PARIS (Reuters) - The French government gave itself the power to block foreign corporate takeovers in \"strategic\" sectors on Thursday, throwing up a potential roadblock to General Electric's $16.9 billion (10 billion pounds) bid for Alstom's energy assets. General Electric (GE) said it would pursue its talks for a deal with Alstom, but some analysts suggested it would encourage rival suitor Siemens. The move extends a 2005 law on defence and other industries and gives the state much-increased powers to block foreign takeovers in the energy, water, transport, telecoms and health sectors - potentially affecting about a quarter of the companies in France's CAC-40 blue-chip equities index. Any such acquisition will now need the approval of the economy minister, the decree published in France's Official Journal said.




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