The WSJ reports,"Alstom SA 's board accepted a bid by General Electric Co. for the French conglomerate's power-generation and transmission business, people familiar with the matter said Tuesday, giving GE the lead in a politically charged takeover fight.
The preliminary deal, under which GE would pay more than $12 billion in cash for the assets, could be announced as soon as Wednesday, the people said.
Alstom's acceptance of the binding offer puts U.S.-based GE ahead of German rival Siemens AG , which was pulled into the contest by French officials seeking a European buyer for Alstom".
Alstom had to be bailed out a decade ago and has fallen on tough times. But the company remains an industrial icon in France, where it makes the TGV bullet trains and power turbines for the country's fleet of nuclear plants. News that GE was in talks to buy the energy operations that account for 70% of the company's revenue leaked last week, triggering a political uproar.
Alstom's fate is a highly sensitive issue in France, where politicians, from the ruling Socialist administration of François Hollande to the opposition, expect a sense of subordination from the business class.
GE argued to French officials that it has been investing for years in the country, where it has 10,000 workers and plans to grow. After a deal closes, the company would base four global businesses, including hydropower and steam turbines, in France, GE ChiefJeff Immelt said in a letter to Mr. Hollande.
