Siemens Says It Will Bid for Alstom's Power-Equipment Business

PARIS--A top Siemens AG executive said Tuesday the company will file an official bid for Alstom SA's power-equipment business by June 16 at the latest, upping the ante in the battle with General Electric Co. for the bulk of the French engineering company.

"Siemens has been carrying out an in-depth due diligence for three weeks, " Christophe de Maistre, the chief executive of Siemens' French unit, told a committee hearing in the French Parliament. "Our industrial project will take the shape of an alliance between Alstom and Siemens."

The German company would bring to the alliance all its rolling stock business, Mr. de Maistre said, adding the operation would spawn two separate companies in power equipment and trains that would be able to rival the world's largest.

"The capacity to create two European giants of that size won't show up twice," he said.

GE has already filed a $17 billion bid for Alstom's power business, but it has run into hefty opposition from French Economy Minister Arnaud Montebourg, who is pushing for jobs and decision-making centers to stay in France. Mr. Montebourg has pushed Siemens to form an alliance with the French company to pursue a Franco-German power giant.

Siemens is considering adding its profitable rail track-signaling business to the deal, Mr. de Maistre said during the hearing. He also said the German firm is ready to guarantee jobs in France for three years.

GE last week extended a deadline to complete its acquisition until June 23 at the request of the French government.

GE Chief Executive Jeffrey Immelt is set to testify at the same parliamentary committee Tuesday evening in Paris. He is scheduled to meet French President François Hollande and Mr. Montebourg Wednesday morning.

Write to Inti Landauro at [e-mail] and Eric Chalmet at [e-mail]

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