Siemens, Mitsubishi Value Alstom Unit at $19.2 Billion

By Dow Jones Business News, 
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PARIS--The joint, binding offer made by German group Siemens and Japan's Mitsubishi Heavy Industries to French industrial group Alstom values its power equipment business at EUR14.2 billion ($19.2 billion), both bidding companies said in a presentation on Tuesday.

Executives at Siemens and Mitsubishi Monday had said their offer's valuation for Alstom Power was higher than EUR13.35 billion.

On Monday, Mitsubishi and Siemens filed a binding offer to acquire parts of Alstom's power assets in a bid to rival a EUR12.35 billion offer filed a little more than a month ago by U.S. industrial giant General Electric.

As part of the plan presented Monday, Siemens would pay EUR3.9 billion in cash for Alstom's gas turbines business, while MHI would inject EUR3.1 billion in exchange for minority stakes in Alstom's steam and nuclear turbines business, grid business and hydro turbines.

The joint offer values all of Alstom's power business, which represents three quarters of the French company's revenue, at EUR14.2 billion.

Last month, GE offered to pay EUR12.35 billion in cash to buy all the power business. The French company's Chief Executive Patrick Kron backed the GE offer saying he wanted to orient the company on its train business, only.

Write to Inti Landauro at inti.landauro@wsj.com

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