Rumors fly linking GE and Alstom

A report by Bloomberg based on unidentified sources said GE is bidding to acquire French turbine, grid and locomotive manufacturer Alstom in a $13 billion deal, but other outlets including Reuters and The New York Times report that Alstom denies knowledge of such a deal.

If it turned out to be true, the combination of GE and Alstom would bring together two powerhouses in gas turbines and add a top-three supplier of transmission and distribution grid equipment and substation automation systems to the GE mix. The deal would be GE’s biggest single acquisition and significantly bolster the company’s industrial manufacturing offerings, a recent point of emphasis for GE. Despite Alstom’s denials, seeing its share prices jump 14% after the rumor circulated no doubt caught the attention of company shareholders.