Good Evening OCU!
Alstrom's shares soared today in Paris.
The unsubstantiated takeover interest by GE sure was credible to investors.
Alstrom is underperforming and Europe is stagnating in recession.
Alstrom's shareholders will get a huge payoff from GE and Alstrom's markets will be expanded around the world.
GE-Alstrom makes a lot of sense.
If the gnomes in Schenectedy and Stamford are counting beans to utilize a little GE cash, I believe it is safe to say that Alstrom is up for auction. Or as they say on the corner of Broad and Wall, Alstrom is in play.
The French are as nationalisticly defensive as the Japanese. They do not like nor are they likely to approve foreign companies taking over domestic ones.
GE has simply fired the first salvo. It is after all only a game.
The difference here is that by many accounts GE is the best managed company in the world.
GE doesn't play and shadow box. GE plays for real.
I have read a few of the Alstrom denials. Remember that in most takeover situations there are often denials from all sides.
Let's wait a few days to see what Siemens has to say.
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