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[grupo guitarlumber] 14/5/2004 13:12

Alstom and DOE to develop hybrid combustion-gasification chemical looping process

14 May 2004 - Alstom announced that it is participating in a U.S. Department of Energy (DOE) project to develop and verify a novel hybrid combustion-gasification chemical looping concept for ultra-clean, low cost, high efficiency coal power generation.

Alstom will develop the hybrid combustion-gasification process using high temperature chemical and thermal looping technologies. The process is based on the oxidation, reduction, carbonation, and calcination of calcium-based compounds to chemically react with coal, biomass, or opportunity fuels in two chemical loops and one thermal loop.

Alstom has completed engineering studies and bench-scale tests on the chemical looping process and determined that this process has the potential to meet ultra-clean low emissions targets, including CO2 capture, at a cost and efficiency that is about the same as today's power plants. Project participants include U.S. DOE, Alstom, Parsons Energy & Chemical Group, Inc., ABB Lummus Global, Inc., and PEMM Corporation.

Pilot-scale process testing is now underway at Alstom's Power Plant Laboratories research complex in Windsor, Connecticut, USA.

The DOE's Office of Fossil Energy, which will oversee the research, has set goals for advanced power systems to have near-zero emissions, fuel flexibility, high-value products, high process efficiency, and cost competitiveness. The continued use of fossil fuel based energy must be matched by combining energy availability at reasonable prices with increasingly clean environmental performance throughout the energy life cycle of production, conversion, and end-use.

The chemical looping process components can be configured alternately as a combustion-based steam power plant with or without CO2 capture or as a hybrid combustion-gasification process producing syngas, or ultimately, as an integrated hybrid combustion-gasification process producing hydrogen for gas turbines, fuel cells or other hydrogen based applications while also producing a separate stream of CO2 for use or sequestration. "By developing and deploying these configurations as independent steps," says John Marion, Director of Global R&D and Power Plant Laboratories for Alstom's Utility Boiler Business, "this new concept offers the promise to become the technology link from today's Rankine cycle steam power plants to tomorrow's advanced power generation plants,"


Funding for the $4m program is partially provided by a grant by the U.S. Department of Energy under Instrument Number DE-FC26-03NT41866. Alstom is committed to developing chemical looping technology for fossil fuel based power generation and is providing significant co-funding to the project.

[grupo guitarlumber] 14/5/2004 06:22

Chirac supports Alstom 'partners'
By Martin Arnold in Paris
Published: May 14 2004 5:00 | Last Updated: May 14 2004 5:00

Jacques Chirac, the French president, yesterday sought to play down the awkward relations between France and Germany over industrial policy by declaring himself in favour of "partnerships" for stricken engineering group Alstom.


The French government and the European Commission are still negotiating a long-term solution to the financial crisis at Alstom, but Mr Chirac said: "France is in favour of all partnerships [for Alstom] as long as they are balanced."

Speaking after a Franco-German summit with Chancellor Gerhard Schröder in Paris yesterday, Mr Chirac said: "The [Alstom] decision is neither French nor German. It is also largely the responsibility of Brussels."

Mr Chirac's comments may have been aimed at repairing the damage to Franco-German relations caused by his government's intervention to encourage the merger of Sanofi-Synthélabo, the Paris-based pharmaceuticals group, with Aventis, its Franco-German rival, to create a French champion.

France's conduct in the Sanofi-Aventis bid battle appears to have sparked a change in the German government's industrial strategy, with greater emphasis on the creation of national champions.

The French government is pushing for a Franco-French solution for Alstom, allowing the stricken engineering group to remain intact through a debt-for-equity swap by the state and banks and an injection of fresh capital, likely to come from Areva, the state-controlled nuclear energy group.

However, Areva is fiercely opposed to this and has teamed up with Siemens of Germany to propose an alternative restructuring plan. This would involve partnerships between Areva and Alstom in transport, including the high-speed TGV trains, and between Siemens and Alstom in energy.

Mr Schröder has repeatedly called for pan-European national champions in recent days, and his government is understood to be giving enthusiastic backing to the Siemens-Areva project.

But this goes against the objectives of Nicholas Sarkozy, French finance minister, who is opposed to a break-up of Alstom.

A finance ministry official said yesterday Mr Sarkozy had "not closed the door on any options" but was "still seeking a Franco-French solution".

[grupo guitarlumber] 13/5/2004 12:39

PARIS (AFX) - President Jacques Chirac said that the government is favorable
to any partnership deals for Alstom SA as long as the partnership on offer was
"well-balanced".
Siemens AG has voiced its interest in the struggling engineering group, but
comments from finance minister Nicolas Sarkozy recently have suggested that a
deal for Alstom with other French companies might be favoured.
Speaking after meeting here with German Chancellor Gerhard Schroeder, Chirac
said that "France is favourable to any partnership, as long as they are
well-balanced".
vl/sst/jad/lam

[grupo guitarlumber] 13/5/2004 11:46

BRUSSELS (AFX) - The European Commission confirmed today that it is closer
to a deal with the French finance ministry over the future of Alstom.
Yesterday French finance minister Nicolas Sarkozy met with EU competition
commissioner Mario Monti. Sarkozy told reporters following the meeting that the
meeting was "constructive" and that they are closer to resolving their
differences on a bailout plan.
Competition spokesman for the commission Tilman Lueder confirmed this
morning that the EU also believes a deal is closer. "Mr Sarkozy's summary
reflects the outcome of the meeting yesterday," said Lueder.
Lueder said there will be a follow-up meeting, most likely on Monday
morning. He said: "We need to continue the discussions and we will see on Monday
how far we are (from an agreement)."
Sarkozy met Monti yesterday in a bid to hammer out a rescue plan for
beleagured engineering group Alstom that will be in line with EU competition
law.
The French government has submitted a 3.2 bln eur rescue plan for Alstom
that would combine assistance from the state and private banks. However, the
scheme needs approval from the commission. A decision is expected at the end of
June.
[e-mail]
ed/jkm/

[ariane] 12/5/2004 21:04

PARIS (AFX) - The European Commisssion will require Alstom to sell further
activities or agree to equity tie-ups with other players in return for approval
of the 3.2 bln eur bailout plan agreed last year, Les Echos reported.
It said according to several sources EU competition commissioner Mario Monti
wants Alstom to double its disposals programme either by selling stakes in its
principal transport and energy activities to other players or selling them
outright.
French Finance Minister Nicolas Sarkozy is to hold a second round of talks
on the subject today with Monti.
According to business daily Les Echos, Alstom and the government are
currently studying a plan for a fresh capital hike of up to 3 bln eur which
would guarantee Alstom's existence for two more years at least.
Under the plan, which would require the backing of Alstom's banks, the state
would swap some of Alstom's debt for equity in the company.
The paper said in order to win the backing of the banks, the government
would in addition need to convince state-owned nuclear group Areva to take a
stake in Alstom, but noted that Areva still opposes such a plan.
Le Figaro described a similar plan, under which both banks and the state
would convert debt into Alstom shares, with the government acquiring a stake of
around 18 pct.
Also without naming its sources, it said much-cited solutions such as
folding part of Alstom into Areva or setting up joint ventures with both Areva
and Siemens AG are stil under consideration.
[e-mail]
mrg

[ariane] 12/5/2004 20:43

PARIS (AFX) - Philippe Carli, chief executive of Siemens France, said a
tie-up of his company with the troubled engineering group Alstom could be an
option, but he said this does not seem to be the preferred solution of either
Alstom or the French government, at least over the short-term.
"Today, Siemens can be a partner" with Alstom, Carli said in an interview
with French radio BFM, referring to speculation that a merger with Siemens would
be a way for Alstom to shore up its balance sheet and reinforce its business
strategy.
Carli also reiterated that Siemens has never hidden its long term interest
of "building a European champion in the energy or transport sectors."
For the time being, however, "this is not really the option that seems to be
pursued by the different parties involved," he said.
The French government is expected to orchestrate a new refinancing package
for Alstom soon, following a rescue package carried out last year. Finance
Minister Nicolas Sarkozy will meet with EU Competition Commissioner Mario Monti
to discuss the matter today.
Nonetheless, Carli said he did not see any threat of a dominant market
position from any alliance between Siemens and Alstom.
"I believe that today, at the EU Commission, the market considered is not
only the European market, but also the global market, and from this point of
view, neither Siemens nor Alstom have dominant market positions."
[e-mail]
js/cml

[ariane] 12/5/2004 20:33

BRUSSELS (AFX) - The French government and EU competition watchdogs have
narrowed their differences on a rescue plan for struggling engineering group
Alstom, but this has not been sufficient to reach an agreement, French Finance
Minister Nicolas Sarkozy said after talks here.
He said his "constructive" meeting with EU Competition Commissioner Mario
Monti has not produced a deal, and there will be further talks on Monday.
"The points of view have got a lot nearer but not near enough to make this
meeting conclusive," Sarkozy told reporters.
"What we want is to save Alstom in its entirety," he reiterated, adding that
the pair would meet again on Monday morning at 10.00 am.
The French government has engineered a 3.2 bln eur rescue plan for Alstom
that would combine assistance from the state and private banks, but the scheme
needs approval from the European Commission, with a decision expected at the end
of June.
bur-jit/jkm/cmr

[ariane] 07/5/2004 10:51

BERLIN (AFX) - Siemens AG could pay around 3 bln eur for Alstom's remaining
turbines operations but has given up the idea of bidding for other parts of its
French competitor, Handelsblatt reported, citing sources close to the German
conglomerate.
"The chances of the European Commission authorising (a turbines deal) are
good," the financial daily quoted one source as saying.
Siemens declined to comment, the paper added.
Siemens bought Alstom's small and medium gas and industrial steam turbines
operations last year.
The French government is looking for a partner for Alstom in the context of
its 3.2 bln eur bailout of the troubled engineering firm, with Siemens and
state-owned nuclear group Areva touted as the most likely suitors.
[e-mail]
soe/nr/jms

[maywillow] 05/5/2004 19:48

Wed 5 May 2004



printer friendly
10:39am (UK)
Amicus Say They Have Evidence to Suggest Unfair Competition Practices in Europe

"PA"


London (ots) – Manufacturing union Amicus says it is in possession of a leaked transport document which implies UK companies are losing out on vital European contracts.



Amicus say the report from a transport industry insider shows that from 2000 to 2003, UK train builders assembled 75% of trains for its own tracks. This compares unfavourably with statistics relating to France and Germany which show that they fulfil 100% of their domestic train building requirements within their own countries boundaries.



Amicus say the figures confirm what British manufacturers have long suspected – that France and Germany favour their own industries in European tendering exercises at UK industry’s expense. Amicus has called on the government to begin an urgent investigation into Eurpoean train procurement practices.

Amicus General Secretary, Derek Simpson, said:



“It appears that the UK’s train building industry may be the victim of unfair competition practices in European tendering exercises. Thousands of UK train building jobs have been lost this year alone and, on the eve of accession, it is vital that the remaining train workers and other struggling UK manufacturers can be convinced that they can expect to compete on a level playing field with European rivals.



“I am calling on the government to begin an urgent investigation into this and to examine whether unfair practices are being used in other industry sectors.”

Only one train building company, Bombardier in Derby, will remain in the UK after the Alstom plant in Washwood Heath closes in September this year. French owned Alstom announced plans to shut their plant at Washwood Heath in Birmingham last year because of a gap in contracts, despite the plant winning a £100 million contract to build carriages for London Underground. The work is being transferred to Spain.



The Washwood Heath plant developed and built the world beating tilting Pendolino train for Virgin and the work finishes in September 2004 while work on the Underground carriages was not due to come on stream until February 2005. The company has cited the five month gap as the reason for plant closure, costing 1400 highly skilled jobs in Birmingham. Bombardier announced 1,000 job losses across its’ UK transport operations last month.





ots Original Text Service: Amicus

[grupo guitarlumber] 05/5/2004 14:39

PARIS (AFX) - The government will not "transfer the problems" of Alstom to
state-owned nuclear group Areva, by forcing it to intervene in the rescue
operation, industry minister Patrick Devedjian said.
"There is no question of putting Areva in any kind of danger," Devedjian
told BFM radio.
Areva is rumoured to figure in the government's rescue plan for Alstom.
Press reports citing insiders have suggested various scenarios, including
Areva taking a stake in Alstom, acquiring its train activities or developing a
joint venture in energy.
[e-mail]
mrg/cml

[grupo guitarlumber] 05/5/2004 08:29

Riverside sailing centre receives Thames award May 4 2004




Greenwich Mercury


A NEW centre created in Deptford to bring the experience of sailing and boating to young people has clinched a prestigious award.

The Ahoy Centre, in Borthwick Street, was presented with the River Thames Society Award for making the most significant contribution to the well-being of the River Thames during the calendar year.

Officially opened by the Princess Royal, in November, it gives sailing lessons to groups of local schoolchildren, including those with disabilities.

The centre is the result of a three- year-long dream by local people to increase access to the river for the community. Volunteer groups cleared derelict land, donated by Fairview Homes, and received a grant for £375,000 from Sport England.

The centre, opposite Canary Wharf, also attracted the support of top yachtswoman Tracy Edwards as a patron.

Deptford MP Joan Ruddock nominated Ahoy for the award.

She said: "It is a wonderful resource for young and disabled people and it is a testimony to the hard work of staff and volunteers alike."

Chris Bentley, from Ahoy, said: "To date, the complete project has been run almost entirely by volunteers, who have given their time and expertise freely."

He added that the group hopes to attract corporate sponsorship to help fund its activities. It is offering packages including team building sessions and regattas.

For information call 020 8516 4040.

[maywillow] 04/5/2004 10:34

FRANKFURT (AFX) - Siemens AG could purchase Alstom's gas turbine unit and
the French government and the EU would not object, Handelsblatt reported,
citing sources within the European Commission.
During a meeting yesterday, French Finance Minister Nicolas Sarkozy and EU
Competition Commissioner Mario Monti discussed the troubled French engineering
giant. Sarkozy said he would not block a competitor's attempt to purchase parts
of Alstom, while Monti said he would not object if Siemens purchased parts of
the French company, Handelsblatt reported, citing people who attended the
meeting.
Siemens acquired Alstom's small and medium-sized gas turbine activities last
year for 1.1 bln eur. Alstom's remaining turbine businesses account for 46 pct
of the company's sales, Handelsblatt said.
amk/cmr

[maywillow] 04/5/2004 06:07

EU and France near an accord on Alstom
Paul Meller NYT Tuesday, May 4, 2004

[maywillow] 04/5/2004 05:37

Monti warns France over payments to Alstom
By Daniel Dombey in Brussels and Martin Arnold in Paris
Published: May 3 2004 21:21 | Last Updated: May 3 2004 21:21


Mario Monti, Europe's competition commissioner, warned France on Monday not to pour more subsidies into Alstom, the engineering group, but left the door open for an "industrial reorganisation" that might still involve the French state.


At the first face-to-face meeting between Mr Monti and Nicolas Sarkozy, French finance minister, the two men discussed the prospects for the struggling company, already the subject of a Brussels inquiry into an alleged €3.2bn ($3.8bn) of state aid.

Mr Sarkozy said that both had displayed a "common will" to solve Alstom's problems and that he would resume talks with Mr Monti as early as next week.

The French finance ministry will be sending a team to negotiate with top Commission officials from Tuesday.

"There are several options on the table," said Mr Monti's spokesman. "Some are promising [although] . . . all these options have their own advantages and disadvantages."

According to Commission officials, Mr Monti rejected the first of three options presented by Mr Sarkozy - in which Alstom would remain a stand-alone company, but Areva, the state-owned nuclear group, might buy a 15-20 per cent stake.

The Commission believes this is not a realistic scenario, since it would fail to assure Alstom's viability and would therefore create the risk of future bail-outs. In addition, it would be hard to prove that Areva was acting as an ordinary investor, rather than providing an additional subsidy.

However, the Commission was much more responsive to the two remaining options presented by Mr Sarkozy, both of which would involve industrial reorganisation.

One option is a full-scale takeover by Areva, which is 93 per cent government owned. The other would be a "double partnership", which could involve Siemens of Germany, Alstom's chief competitor in the French company's showpiece trains and turbines businesses.

Areva, which is reluctant to take on all of Alstom, has offered to take over the group's transport division, including the high-speed TGV train, leaving Germany's Siemens to fulfil its ambition of buying the turbines business.

Mr Monti has indicated a preference for this solution but has been warned by his staff that it could pose serious antitrust problems.

Some Commission officials now argue that General Electric's leading position on the world market could make a Siemens-Alstom deal possible, but admit that clearance could also have to come from other authorities such as the US and Japan.

[maywillow] 03/5/2004 11:25

updates with commission comment that state of talks is 'promising')
BRUSSELS (AFX) - French Finance Minister Nicolas Sarkozy said his government
and the European Commission share a "common will" to find a solution for the
rescue of Alstom.
Sarkozy was speaking after a meeting on the government's proposed rescue
package for Alstom with competition commissioner Mario Monti, which an EU
spokesman described as having opened up "promising avenues".
The Commission said Sarkozy and Monti agreed to make "rapid progress
together."
The two men discussed several options.
"Some ... could entail a long-term resolution of the file ... (but) all ...
need to be further discussed," said Tilman Lueder, competition spokesman for the
commission. "There are promising avenues."
Sarkozy said he expects to arrange a follow-up meeting with Monti next week.
Today, they discussed both the social and industrial implications of the
government's proposed bailout package for Alstom and agreed to proceed with a
view to finding a solution in line with EU regulations, the commission said.
The commission is due to rule in June on the 3.2 bln eur bailout package
agreed by Alstom's creditor banks and the government last November.
Newspaper reports today claim Sarkozy was to press Monti to accept an
all-French solution for the company, possibly including a partial takeover of
Alstom by France's state-owned nuclear group, Areva, with would-be suitor
Siemens AG having been pushed more into the background.
A source close to the case said three possible solutions are in the frame.
"The French are open to all scenarios. That in itself is a step forward,"
the source added.

[maywillow] 03/5/2004 10:09

---- by Matt Gil and Alfred Kueppers ----

PARIS (AFX) - The government is set to win EU clearance for its preferred,
French-dominated solution to Alstom's financial woes, meaning state-owned
nuclear group Areva, rather than German suitor Siemens AG, will likely emerge as
the troubled engineering company's core industrial partner, analysts said.
Finance Minister Nicolas Sarkozy met Competition Commissioner Mario Monti
this morning, with analysts expecting the minister to have put the case for the
government's 3.2 bln eur bailout for Alstom agreed with banks last November.
The eventual solution to secure the future of Alstom could still take a
variety of different forms. But it will ultimately be shaped by the role the
government is allowed to take by the Commission, analysts in France and Germany
agreed.
And while the EU is not expected to rule on the buyout until June,
indications that the plan is likely to go through unscathed will mean the
government can begin in earnest to clinch a suitor for Alstom - and its
preference for a French-based solution is clear.
Paris-based Natexis Bleichroeder said that, although Siemens remains in the
frame, the scenario of a partial takeover by Areva is gaining credibility.
In Frankfurt, Vidar Kalvoy of DZ Bank, rated Siemens' chance of succeeding
in buying energy or transport assets from Alstom at slimmer still.
"The French will examine every possible alternative before they break up the
company," he said. "They want to keep Alstom in French hands."
However, SG Securities, considers there is "zero visibility" on the
Alstom/Areva/Siemens combination, reflecting in part today's press speculation,
with a variety of newspapers suggesting multiple scenarios.
Shortly after being named Finance Minister in March, Sarkozy visited the
company's train production site and declared: "we will not let Alstom fail."
So, "in the hope that the French government would provide Alstom with its
full backing we recently upgraded our rating," SocGen said.
However, "we now consider that the uncertainty is too great to take a
position on the stock."
The Financial Times said Sarkozy was today to have presented Monti with
various solutions, according unnamed sources.
The government and banks could swap debt for shares in the company, with
bringing in Areva in addition to provide extra stability being the second phase
of this plan, it said.
But this would hamper Areva's plans to float, and the FT claims Areva would
prefer to take over Alstom's transport division - including high-speed TGV
trains - and leave Siemens AG with the turbines business.
According to an Areva source cited by Agence France-Presse however, Areva
would prefer the more logical solution of collaborating with Alstom on energy
projects.
The FT claims the government is seeking a French solution and is involving
Siemens in order to satisfy the Commission's insistence on a genuine market
solution.
Siemens CEO Heinrich von Pierer last week revealed he had met Prime Minister
Jean-Pierre Raffarin to discuss Alstom.
But today's La Tribune agreed Areva is no longer concealing its ambition to
get control of the trains business, and that Siemens is being kept on board in
order for talks purely to satisfy EU competition protocol.
Le Figaro, meanwhile, cited finance ministry sources as saying a tie-up with
Siemens in either trains or energy is being held in reserve as a compromise
option if the government cannot prove Areva's independence and thus meet EU
competition concerns.
It said the EU would prefer a dismantling of Alstom with the trains business
going to Areva, turbines to Siemens and Alstom Marine to state-owned French
Naval Construction Directorate DCN.
Natexis Bleichroeder commented that "bail-out scenarios are taking shape,
and in our view are tilting towards an industry solution."
But while "the scenario of "a partial takeover by Areva is gaining
credibility, Natexis said it "cannot rule other industry scenarios " including
not only Siemens but Finmeccanica SpA for the Marine buisness and Rolls-Royce
Group PLC in turbines.
In Frankfurt, analysts said Siemens would benefit most by purchasing parts
of Alstom, specificially its gas turbines division, but conceded that this is
unlikely, given the French government's reluctance to break up the conglomerate.
"The statements that I have heard from the French government have been quite
contradictory," said Theo Kitz, an analyst with Merck Finck. "But my
understanding is that Siemens can't take over the gas turbines unit from Alstom,
because the French don't want to break the company up."
Kitz added that Alstom's tranportation unit would also be of interest to the
Germans.
But "Siemens would be most interested in the signalling technology," Kitz
said. "Since they are involved with the ICE (Germany's high speed train) they
don't neccessarily need the TGV."
Analysts also question the benefit of a full alliance given the diversity of
both firms. Though Siemens makes everything from light bulbs to power plants, it
would have little use for Alstom's sizeable shipbuilding division.
"Who wants to build ships in Europe?" asked DZ Bank's Kalvoy.
[e-mail]
mrg/amk/jms

[ariane] 01/5/2004 10:47

30 Apr 2004 18:13 GMT EU's Monti Set To Scrutinize France Proposals For Alstom


Copyright © 2004, Dow Jones Newswires


By James Kanter

Of DOW JONES NEWSWIRES

BRUSSELS -(Dow Jones)- When French Finance Minister Nicolas Sarkozy comes to Brussels Monday to present a salvage plan for beleaguered engineering giant Alstom SA (ALS), he's likely to face a skeptical European Union antitrust chief, Mario Monti.

The French minister is expected to make at least two proposals to save the maker of TGV trains, luxury liners and power generation plants. The problem is that both plans - involving French state-owned nuclear generator Areva SA (4524.FR) and German engineering giant Siemens AG (SI) - could create new headaches under the E.U.'s competition rules.

A French government-led EUR3.2 billion bailout last autumn saved Alstom from bankruptcy. Brussels still must approve this bailout, and it has made selloffs by Alstom a key condition. The regulators' decision is expected in the second half of June.

Behind the wrangling over Alstom lies deepening resentment between Paris and Brussels. The French say E.U. Commission practices are hurting French and European competitiveness. The Commission disagrees, saying France should stop intervening in the marketplace and follow the E.U.'s rules.

Areva already has bought Alstom's power transmission and distribution assets. The state-owned company now is considering buying all or part of its bullet train and tram business, according to people familiar with the situation.

But an Areva deal with Alstom could arouse suspicions in Brussels that France is using taxpayers' money to prop up a flailing national champion. Sarkozy must show that a private investor would have the same interest in buying into Alstom. Otherwise, investment by a public company can be found illegal under E.U. rules. Those rules are needed, regulators say, to stamp out subsidies to government favorites and encourage a level, free-market playing field.

Regulators would want to know if Areva "pays the right price and whether the deal has industrial logic - or if it's a form of bailout," said one person close to the case.

Any Siemens deal is likely to raise different concerns - about overlaps. The German company is privately owned so public funding is not an issue. The problem is size. Already one of Europe's engineering titans, Siemens bought Alstom's small and medium gas turbine operations last year. It's the only other major train producer in Europe. Further acquisitions means Siemens could face lengthy investigation by E.U. merger authorities worried the company is becoming too strong in certain markets.

To rebut those charges, Alstom and Siemens could mount a so-called failing-firm defense to show that the market would be worse off without a deal that keeps Alstom's production sites going. Successive French governments have managed to finesse the E.U.'s competition rules - most recently, for example, by openly criticizing Novartis AG (NVE) from making a bid to buy Franco-German drug company Aventis (AVE). In the past, Monti and his predecessors have failed to stop the French government from intervening to give billions to Air France Group (3112.FR) and France Telecom (FTE).

But Monti is a tough-minded man, determined to fend off political pressure. Just last month, he fined Microsoft Corp. (MSFT) a record EUR497 million despite US disatisfaction with his reasoning. In Alstom's case, Monti and his officials still may prefer forcing the company to look for alternative buyers rather than give their blessing to an anticompetitive deal.

-By James Kanter, Dow Jones Newswires; 322-285-0136; [e-mail]

(With reporting By David Gautier-Villars and Greg Keller in Paris)

(END) Dow Jones Newswires

04-30-04 1413ET

[ariane] 30/4/2004 16:43

The last train Apr 30 2004




By Ben Hurst, Evening Mail


Work has begun on the last train to be built in Birmingham.

Sir Richard Branson who is buying the Pendolino for Virgin Trains described the event as "extremely sad".

Alstom is ending train production at the Washwood Heath site and 1,000 jobs are set to go.

The 53rd Pendolino in the £1billion fleet will be completed within the next few months.

"Washwood Heath is producing the best trains in the world," said Sir Richard who admitted he was saddened by the decision by French firm Alstom to end production in Birmingham.

Only maintenance operations will remain. Sir Richard said: "The best trains in the world are being built in Birmingham but the French company have decided to close production.

"It is a tribute to the workers that they have stayed with the production to the end to make sure it is completed properly.

"All the guys and girls at Washwood Heath should be extremely proud with what they have achieved in the last five years.

"They are transforming the rail network for everyone.

"It is just an extremely sad situation that so many talented people who build the best trains in the world have to go and find jobs, some of which will be outside the rail industry."

The entire Alstom workforce assembled to see the train roll onto the production line.

Three were given holidays in Florida by Sir Richard and all the workers were also given a first class pass for Virgin Trains for themselves and their families.

Peter Doolin, Vice President of West Coast Mainline production at Alstom said: " Today is about achievement and

pride, but it is also a sad day because after the assembly is completed Birmingham will not be handling rail vehicle building."

[grupo guitarlumber] 30/4/2004 08:28

LONDON (AFX) - Shares in Alstom have been downgraded to 'reduce' from
'neutral' by UBS, dealers said.
In a note to clients, the broker noted that recent French press reports
suggest that the French Finance Ministry is considering modifications to the
refinancing package announced last year and currently being reviewed by the
European Commission.
UBS pointed out that possible options are said to include a further capital
increase, some form of intervention by Areva or Siemens, or a debt for equity
swap.
The broker said it believes, however, that even if the EU approves the
current refinancing plan, this would not be sufficient, as the equity base will
still be too small to support the underlying business and debt will remain high.
UBS estimates that as much as 3.5 bln eur in new equity could be required to
put the balance sheet back on a long-term sustainable footing and in the short
to medium term, believes that around 1.5 bln eur is needed to bring greater
stability and avoid looming liquidity issues.
Overall, the broker said it does not feel the group's fundamental valuation
justifies the current share price, particularly in light of the risk of further
dilution, pointing out that a 1.5 bln eur capital increase at a 30 pct discount
would move 2006 EPS estimates down to 0.10 eur. It retained its price target of
1.4 eur.
gl/jmh/jsa

[grupo guitarlumber] 30/4/2004 04:49

A Siemens-Alstom dilemma for Monti
By Brian Groom
Published: April 30 2004 5:00 | Last Updated: April 30 2004 5:00

Nicolas Sarkozy, France's supercharged finance minister, goes to Brussels on Monday with a bagful of ideas to rescue Alstom. The issue is no longer simply securing Mario Monti's approval for last summer's government-backed bail-out, but persuading the European competition supremo to consider far more radical proposals to ensure the engineering group's ultimate survival.


Paris is worried that the original bail-out will not resolve Alstom's problems. Nothing short of a blockbuster alliance with a strong industrial group will do the trick. The choice has been between turning Alstom into "Siemens àla française" by merging it with the cash-rich Areva nuclear group or combining it with Siemens to form a new European heavyweight.

A potential mixture of the two scenarios was emerging last night, whereby Alstom's high-speed trains would combine with Areva and its shipyard with the government DCN military group, leaving Siemens as the obvious buyer for the turbines.

A combination with Siemens would pose problems for Mr Monti, the EU competition commissioner. At first he seemed to favour it but an internal Commission report warned about antitrust problems because of reducing world competitors from three to two in high-speed trains and turbines. Now officials are having second thoughts, pointing out General Electric would still be the world leader in the gas turbine sector. Whatever the outcome, there is a compelling case for creating a European group that would give GE a run for its money.

Mr Monti, in this case, should adopt a creative interpretation of competition rules.

[grupo guitarlumber] 30/4/2004 04:36

Sarkozy to pitch Alstom/Areva tie-up
By Martin Arnold in Paris and Daniel Dombey in Brussels
Published: April 29 2004 22:04 | Last Updated: April 29 2004 22:04


Nicholas Sarkozy, France's finance minister, is planning to secure the long-term future of Alstom by combining its transport activities, which include the high-speed TGV train, with state-owned nuclear group Areva.


Alstom, bailed out last year with government help, is still facing an uncertain financial future and its banks have given it until September to renegotiate last year's €3.2bn ($3.8bn) state-backed rescue package after it warned of worse than expected results for the year to March 31.

The government is seeking a longer-term solution to the company's problems, for which the creation of a Siemens à la française with Areva seems an obvious answer. Mr Sarkozy, speaking on a visit to a nuclear power plant at Chinon on Thursday, said: "One can imagine partnerships [for Alstom] with French companies."

Mr Sarkozy's plan, which he will present to the European Commission on Monday, has been accepted in principle by Areva. The state-controlled nuclear group had until now managed to resist pressure to play any role in the rescue of Alstom for fear of delaying its planned privatisation.

Areva remains opposed to other possible solutions being proposed by Alstom's main creditor banks, such as taking a 15-20 per cent stake in Alstom or a complete takeover. But it is now understood to see the "industrial logic" in combining with Alstom's transport business.

A merger of Alstom's train and tram-making business with Areva would leave its energy business, essentially made up of its large-scale gas turbines unit, and its ship-building business. The shipyard is likely to be combined with the government DCN military group. The obvious buyer for the turbines unit would be Siemens of Germany, which has bought some Alstom power assets and is understood to be interested in a deal.

Some European Commission officials are also having second thoughts about whether antitrust rules would preclude an alliance with Siemens, because General Electric would still be world leader in the gas turbine sector. "We would look at an industrial reorganisation with interest and an open mind," said a spokesman for Mario Monti, EU competition commissioner.

However, any deal with Siemens could also face French political hurdles to selling a large part of a former national engineering champion to a foreign company. Patrick Devedjian, industry minister, said yesterday: "A proposal from Siemens is even still a proposal for dismantling...not something we want."

Anne Lauvergeon, Areva chief executive, hopes to avoid any action that will prevent the nuclear energy group from moving quickly to a public offering as soon as she receives the government go-ahead.