MUNICH, Germany, June 20 (UPI) -- Siemens and Mitsubishi Heavy Industries have upped the cash component in their bid to acquire French company Alstom, as the takeover battle with GE intensifies.
The two companies said they had consulted with Alstom shareholders and addressed the main concern they had by increasing the cash component of the deal by €1.2 billion to €8.2 billion ($11.2 million), valuing Alstom's energy business €14.6 billion, €400 million higher than GE's offer.
Under the new deal, Mitsubishi would acquire a 40 percent stake in Alstom's power turbine, electric grid and hydroelectric power businesses for €3.9 billion in cash, an increase of €800 million.
Siemens also did away with with ambiguous language it used in its previous offer, which said the company would make a "good faith" effort to combine its rail business with Alstom's. Instead the company said it will move immediately to enter a joint venture with the French company.
The revised offer comes a day after GE, while not increasing the financial value of its deal, promised to give the French government more control over Alstom's energy assets, even a veto power in the energy business. This was an attempt was assuage concerns of French President François Hollande and address key political concerns rather than increase the cash component of the deal.
"In addition," GE said of Siemens' proposed deal, "the competitive bid is unrealistic because it splits Alstom's gas and steam businesses and is not structured for the long-term success of Alstom."
GE said its offer will expire June 23, and CEO Jeffery Immelt hinted Thursday that the offer could off the table after the deadline. Alstom said in a statement its board would convene no later than June 23 to review all offers.