Alstom: messy proposal The Mitsubishi/Siemens proposal for parts of Alstom has been concocted with French politicians in mind. And it shows. Four groups of shareholders are involved – Siemens, Mitsubishi, GE and Alstom. The proposal is messy for all of them. Mitsubishi wants to buy minority stakes in three of Alstom’s energy businesses for €3.1bn, and a 10 per cent stake in Alstom itself (worth €0.9bn at today’s price). So the Japanese company pays €4bn and gets control of nothing. Siemens shareholders look only slightly better off. They pay €3.9bn for control of Alstom’s gas business and its lucrative service contracts. And if the deal goes ahead, Siemens will have blocked, or at least delayed, GE’s European ambitions. But to win political favour, Siemens’ offer comes with three-year job guarantees in France and Germany. And the promise of talks over Alstom’s rail businesses once the energy deals are complete hint that deal speculation (and hence French government meddling) will drag on for years. GE shareholders get to observe – agog – what European political manoeuvring can do to what was a relatively straightforward deal. Their company has offered $17bn for Alstom’s thermal, renewables and grid businesses, but will now have to decide whether to increase the offer or let Mitsubishi and Siemens lie in the bed they have made. Finally we come to Alstom shareholders, who are – nominally – the ones who will be making the decision. The Mitsubishi/Siemens offer provides a cash injection of €7bn (against net debt of €3bn) and allows the French group to preserve its independence. But they lose one of their energy businesses, get a minority shareholder in three others and face protracted talks over what happens to their rail business. They might well be pining for the quiet life offered by GE.