Alstom India Slumps 9% on GE's Open Offer Price

Alstom India shares slumped 9 per cent to Rs 416.65, while shares in Alstom T&D India fell as much as 3 per cent to Rs 263.40 on Monday as GE's open offer price to acquire Alstom's stake in these two companies disappointed investors. US conglomerate General Electric offered to buy the two Indian companies' parent Alstom's energy business for about 12.35 billion euro.

GE's open offer price to acquire Alstom's 26 per cent stake in Alstom India at Rs 382.20 per share for a total amount of Rs 668 crore is 16.2 per cent less that the stock's last closing price of Rs 456.05 on the National Stock Exchange.

GE has offered Rs 261.25 per share constituting a total amount of Rs1,674 crore for 25 per cent stake in Alstom T&D against Friday's closing at Rs 271.75.

Alstom announced last week that it has received a binding offer from GE to acquire its energy business and said it is considering the proposed acquisition.

GE will indirectly acquire Alstom's 75 per cent stake in Alstom T&D and 68.6 per cent in Alstom India, if its bid to buy the French group's energy unit is successful, requiring the US group to launch tender offer as per Indian market rules.

Alstom India shares have rallied almost 8 per cent in last one week whereas shares in Alstom T&D has gained nearly 6 per cent in last one weak post announcement of the above news against Nifty's 0.6 per cent fall in last one week.

Shares in Alstom India traded 0.5 per cent lower at Rs. 452 and Alstom T&D India shares traded 6.4 per cent higher at Rs. 288.55 compared to 0.3 per cent gain on Nifty as at 10.20 a.m.

(With agency inputs)