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Japan: Mitsubishi to join Siemens in beating General Electric for takeover

 |  June 11, 2014

Japan-based Mitsubishi Heavy Industries could enter into a takeover bid with Germany engineering giant Siemens in efforts to acquire French turbine and train maker Alstom.

According to reports, Mitsubishi and Siemens could join forces against General Electric, which has offered to acquire the French company for $13.5 billion. In a joint statement, Siemens and Mitsubishi said they have “joined forces” to consider a joint bid.

Siemens was encouraged by the French government to acquire Alstom after GE announced its takeover plans, reports say. GE’s deal would result in Alstom becoming just a rail company, whereas Siemens has offered to give Alstom its rail operations in exchange for Alstom’s power business.

That deal, however, was met with skepticism among Alstom, according to reports.

Siemens originally set a deadline of Monday to decide on a possible deal, but in its joint statement with Mitsubishi said it would hold off on that deadline for now. Reports say that delay suggests Mitsubishi and Siemens are close to striking a joint bidding deal.

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