Siemens and Mitsubishi Heavy Industries (MHI) raised their offer for Alstom’s energy businesses to compete with a revised bid by US rival General Electric.

Siemens-MHI and GE have been facing off in a battle for control of Alstom’s power businesses that has seen the Socialist government give itself powers to block any deal in the name of protecting local jobs and influence over a strategic sector.

Under their amended offer, Siemens-MHI would pay €8.2 billion in cash rather than €7 billion and value Alstom’s power businesses at €14.6 billion, €400 million more than previously and still well above GE’s €12.4 billion.

Alstom said its board of directors would convene no later than June 23 to review the reshaped offers.

The improved Siemens-MHI proposal still foresees Siemens buying Alstom’s gas turbine business.

But MHI is now offering to buy a 40 per cent stake in the combined steam, grid and hydro business of Alstom and bundle them in a holding company. It previously planned to create three joint ventures by acquiring 40 per cent of the steam business, 20 per cent of grid and 20 per cent of hydro.

The change will increase MHI’s share of the cash payment to €3.9 billion from €3.1 billion. Siemens’s contribution rises to €4.3 billion from €3.9 billion, with the company saying the increase was based on “a subsequent, more advanced opportunity/risk analyses”.

In addition, Siemens is offering to immediately enter into a joint venture for mobility management, including signalling, with Alstom.

“MHI and Siemens continue to firmly believe that their proposal is the best one for Alstom, its employees, its clients, its shareholders and French national interests. Such proposal is superior industrially, financially and socially,” the two companies said in a statement. (Reuters)