Alstom: showdown around the participation of Bouygues
Negotiations are clamped between the state and Bouygues group, which yesterday announced its intention to take 20% of Alstom, Bouygues which now holds 29.4% equity. If the State has announced its intention to enter "on the basis of market price" (28 euros at the closing Friday night), Bouygues does not intend to sell off its stake, recorded in its accounts to 34 euros. According to AFP, he would ask 35 euros. Negotiations must be buckled before the opening of trading on Monday.
Saturday, Francois Hollande said he hoped progress "by the end of the day", adding that "if there were no such advances, if there was no such sale a price that is acceptable to the government, then there would necessarily return to the alliance as it has been announced. "
In any event, the State has the means of pressure on the group, which is largely dependent on government. "We have enough overall relations with Bouygues on many subjects so that it does not go bad. The offer MHI / Mitsubishi remains also always possible, "says a government source.
The executive made a surprise Friday night, inviting the State in the Alstom file. "The government has decided to enter the capital of Alstom up to 20% and become the largest shareholder of the company," said Economy Minister Arnaud Montebourg at a press conference. The state will buy it for two thirds of Bouygues' stake which now holds 29.4% of the shares of the group. Evaluated 1.7 billion during the last Alstom this entry to capital could be funded by the EPA (Agency interests of the State) or Bpifrance, without the need to sell assets.
The choice of General Electric
Arnaud Montebourg also announced that the choice of the state was focused on the amended offer of U.S. group General Electric , which was preferred to competitors Siemens and Mitsubishi Heavy Industries . But under "rigorous and respectful of the interests of France conditions," the minister said. The State will apply the decree of 14 May on foreign investment in France, allowing him to oppose an acquisition in the strategic energy sector.
"Alstom is maintained in most of its activities", welcomed Arnaud Montebourg, citing an "alliance of equals, the nature of that which had been made there forty years Safran and General Electric," and far from "buy-absorption-devouring" envisaged by the American cause.
Prime Minister Manuel Valls also welcomed these announcements, indicating that the choice of returning to GE "much to the Arnaud Montebourg commitment," and that "in terms of method, it is the anti-Florange" with reference to the conflict that opposed the fall of 2012 Jean-Marc Ayrault and Arnaud Montebourg, who campaigned at the time for nationalization Site ArcelorMittal Florange. For its part, the CFE-CGC union first French group, said that the entry of the state capital of Alstom was "reassuring" and that there was "no doubt now that the Board of Directors choose General Electric. "
"Brussels is the main obstacle to the creation of European champions"
Arnaud Montebourg called supply Siemens and Mitsubishi, "very serious, very credible, very seriously worked." But she "met the competition rules which are monitored by the European Commission. Brussels is the main obstacle to the creation of European champions, "he has said. Supporting management in the supply of GE, and prior discussions with the American group, may have also played a vital role." Had we both offers at the same time, they are worth, "said a government source.
The presentation of the operation is able and advantageous for governments that can boast of having preserved the French interests. And, even if, ultimately, GE will acquire many swathes of the French equipment: gas turbines, much steam turbines, 50% of renewable electricity networks.
"The deal will not strengthen Alstom least, since it provides cash to pay off debt, and allows it to benefit from the balance sheet of General Electric to offer its customers financing its projects, a key point in its business" insists one at Bercy. The decision to enter into exclusive negotiations with GE is now up to the Board of Directors of Alstom, which held its first meeting on Friday evening and is expected to decide before the opening of trading on Monday morning, if discussions are unlocked with Bouygues by then.
A reverse of the 2006 scenario
The government's plan to buy 20% of Alstom, Bouygues is the exact opposite scenario of 2006, when the construction group had taken the part of the State in the specialist transport infrastructure and energy.
In April 2006, Bouygues acquired the 21.03% that the State held in Alstom's capital from the public rescue it in July 2004. In 2007, Bouygues' stake was 25.3%, then time exceeded the 30% mark before falling to the current level of 29.4% after a capital increase of Alstom end of 2012, Bouygues had not followed at the time.
The 20% stake in Alstom represent € 1.7 billion, based on the current market capitalization of the group according to Thomson Reuters data. In 2006, Bouygues had purchased from the state about two billion euros