Hitachi to Join Potential Siemens Bid for Alstom Assets

TOKYO--An executive of Hitachi Ltd. (6501.TO) said Thursday that the company will work closely with its partner Mitsubishi Heavy Industries Ltd. in a potential joint bid with Siemens AG for energy assets of France's Alstom SA.

Siemens, the German industrial conglomerate, said Wednesday it would work with Mitsubishi Heavy to assess a potential pitch for the Alstom operation in a move that would rival General Electric Co.'s offer to buy Alstom's energy and rail divisions at $17 billion. Alstom has tentatively approved a bid from GE, but French government officials have objected to the U.S. company controlling what they see as strategic national assets.

"Hitachi is aware of the Alstom issue and we consider this a very good deal," Katsumi Nagasawa, Hitachi's executive heading its power systems business, said at an investors briefing in Tokyo.

"We will work closely" with Mitsubishi Heavy, Mr. Nagasawa said, adding the company was exploring various options. He declined to provide further details. The two Japanese heavy-machinery makers recently integrated their thermal power businesses.

The Nikkei reported on Thursday that Hitachi and Mitsubishi Heavy will form a joint venture and spend nearly $5 billion to acquire Alstom's steam turbine operations.

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