Shareholders OK Alstom-GE deal

Alstom shareholders on Friday threw their weight behind the company's resolve to part with its energy assets so as to enable the French firm to focus much more strongly on the development and production of high-speed trains.

Despite some sharp exchanges at the meeting, the sale of the assets to General Electric was approved by over 99 percent of the votes, with Alstom's Chief Executive, Patrick Kron, saying their could have been no better solution for the company.

GE snapped up the prize of Alstom's gas turbine unit, which complements the US firm's expertise. GE is already the world leader in the sector.

Job safeguards

The Americans also agreed to take on Alstom's nuclear, steam turbine, offshore wind and hydro power businesses, which it said it would run as 50-50 joint ventures with French shareholders, including the government in Paris.

In return, General Electric is to hand its own train signaling segment to Alstom's high-speed rail operation business, making the country's famed TGV trains.

GE had to agree to a number of concessions to win over the French government, including job guarantees.

The US company won a two-month political battle to buy the energy arm of Alstom in late June, getting the upper hand over rival joint bidders Siemens of Germany and Mitsubishi Heavy Industries of Japan.

hg/nz (AFP, dpa)