French Economy Minister: State Will Likely Use Option to Buy Alstom Shares

By William Horobin

BELFORT, France--French economy minister Emmanuel Macron said Thursday the state will likely use its option to buy shares in Alstom SA's (ALO.FR) transport division, which would be created after General Electric Co.'s (GE) takeover of Alstom's core energy businesses.

Once the deal with GE closes, the French government will hold 20% of the voting rights in the new Alstom transport company by borrowing shares from telecom-to-construction conglomerate Bouygues SA.

Mr. Macron's predecessor, the outspoken leftist Arnaud Montebourg, had also negotiated an option for the state to buy the Bouygues shares it borrows.

"Because we have reserved [this option] we are in all likelihood counting on using it," Mr. Macron said as he visited an Alstom train assembly plant in eastern France.

Still, Mr. Macron, a former investment banker, said the state wouldn't necessarily acquire the capital at the earliest opportunity and only in the right conditions.

"It would need to happen at the right time and if it was necessary," he said.

During his visit to the Belfort plant where Alstom is facing a fall in orders, Mr. Macron sought to reassure employees with other pledges. Notably, he said state owned-train operator SNCF will launch a 50 million euro ($54.5 million) tender offer in June for the engineering program for a future high-speed train.

Write to William Horobin at [e-mail]

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