Siemens mulling joint bid for Alstom with Mitsubishi Heavy Industries

MUNICH, Germany, June 11 (UPI) -- Siemens is contemplating putting forward a joint bid for Frances' Alstom with Japanese company Mitsubishi Heavy Industries, countering a $17 billion offer by GE.

The two companies will decide by June 16 whether to submit a joint bid to the Alstom board. The bid could involve Mitsubishi Heavy acquiring Alstom's steam turbine and grid business, whereas Siemens would get the gas turbine operations, according to people familiar with the matter.

"We firmly believe that we can substantially contribute to a partnership solution for Alstom which will create value for all parties involved, including the country of France," Mitsubishi Heavy Industries Chief Executive Officer Shunishi Miyanaga said in a statement.

GE and Siemens have been involved in a bidding war for the French train and energy company, with the latest development signaling which part of Alstom's business Siemens is interested in. GE is also interested in Alstom's energy business, which is based near Paris and makes turbines and power transmission equipment.

"Alstom would be completely torn apart, but it does demonstrate which parts of the business Siemens is really interested in," said Landesbank Baden-Wuerttemberg analyst Volker Stoll, talking about the possible Mitsubishi-Siemens bid.

The French government has played an active part in the negotiations surrounding Alstom, in order to ensure that French interests are maintained and that jobs are not lost in the process.

"We continue to have constructive discussions about the details of our proposed alliance with Alstom and remain confident," GE said in an e-mailed statement, not commenting on the Mitsubishi development.