Thursday, May 22, 2014

Siemens CEO vows to hold on to parts of rail business

FRANKFURT Thu May 22, 2014 7:04am EDT





<span id="articleText"/>FRANKFURT May 22 (Reuters) - German engineering group Siemens wants to hold on to at least some parts of its rail business in any deal with French rival Alstom, its chief executive said on Thursday.



<span id="midArticle_0"/>"I can assure our staff that we want to remain engaged in the rail business in the long term - in whatever constellation," CEO Joe Kaeser said in remarks posted on the group's website.



<span id="midArticle_1"/>"We would have to see what the possible balance of majority ownership would look like in the short and long term."



<span id="midArticle_2"/>Alstom has been in talks with General Electric over a 12.35 billion euro ($16.9 billion) bid for its power arm.



<span id="midArticle_3"/>Under pressure from the French government, however, Alstom has also opened its books to Siemens, which has dangled its rail business in front of the French company as part of a possible asset swap.



<span id="midArticle_4"/>Siemens has asked Alstom for more information ahead of any offer for the power business.



<span id="midArticle_5"/>Sources familiar with the Franco-German talks said on Sunday that Siemens was discussing handing over all of its rail business to Alstom and setting up a joint-venture in rail signalling



<span id="midArticle_6"/>But according to media reports, Siemens was at some point offering Alstom half of its train-making business plus cash in exchange for its French rival's power turbines division.



<span id="midArticle_7"/>GE Chief Executive Jeff Immelt said on Wednesday that GE was still going to "work constructively" with the French government on its bid and that he expected the deal to close.



<span id="midArticle_8"/>In the Siemens CEO's remarks posted on the website, Kaeser also sent a message of defiance to rival bidder GE, saying the German company's ongoing strategy overhaul would not keep it from holding its own when assets are for sale.



<span id="midArticle_9"/>"It would be quite a mistake if any competitor thought we'd be preoccupied with ourselves at the moment, and that we wouldn't be ready to act at any time and any place."



<span id="midArticle_10"/>Siemens earlier this month unveiled a long-awaited restructuring in a drive to catch up with more profitable competitors. (Reporting by Ludwig Burger; Editing by Stephen Brown/Mark Heinrich)



<span id="midArticle_11"/>

  • Link this

  • Share this

  • Digg this

  • Email

  • Print

  • Reprints











via Smart Health Shop Forum http://ift.tt/1sYMHeW

No comments: