ALSTOM (NEUTRAL, TP E33) SIEMENS REPORTEDLY TO MAKE AN OFFER TOMORROW:
Reuters reports that SIE's offer would put a slightly higher value on Alstom's
energy operations compared to the bid from GE. The offer would consist of
Siemens's rail unit and less than E7B in cash, and it would not include
Alstom's nuclear, wind energy (all renewables valued at E730m acc to us) and
grid (E2bn valuation acc to us) units.
==> We believe valuation of this offer would be roughly in line with GE's
though way more complicated to read as it is difficult to put a fair valuation
on SIE's rail unit. Note it seems that SIE's signalling unit (the jewel) seems
to be excluded form SIE's offer... All in all we believe that discussions will
keep going on with GE and SIE (note GE is in Paris to meet government officials
today and tomorrow) BUT that GE remains the favorite as long as SIE comes out
"only" with such an offer (no signalling unit in the pipe, uncertainties on
SIE's rail unit...)