Alstom and Siemens rail deal runs into French political concerns
Munich/Paris — French politicians voiced concerns on Tuesday that a planned multibillion-dollar merger of the rail assets of Alstom and Siemens could give the German company the upper hand. Two sources familiar with the matter said the French company plans to pay shareholders a special dividend if the deal does go through. Siemens is expected to opt for a deal with Alstom rather an alternative with Canada’s Bombardier, two sources familiar with the matter told Reuters. Siemens Mobility is set to be merged into Alstom, in which Siemens would hold 50% plus one share, while the chief executive would be Alstom’s current boss, Henri-Poupart Lafarge. The likely transaction has political ramifications, since the French state owns about 20% of Alstom. A special dividend would even out the value of Siemens and Alstom, which has too much cash on its balance sheet, to smooth the intended 50-50 joint venture, one of the sources said. "Will there be a special dividend? Yes," said the second pers...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.