https://www.marketwatch.com/story/ge-french-government-clash-over-alstom-jobs-miss-2018-06-14
GE is laying off 12000 and France is disappointed in GE not creating 1000 jobs...get real. This is why GE needs to pull out of France totally.
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GE just cut 1200 jobs in Switzerland and Trian Fund Management has lost over a billion dollars in GE stock since 2015 so if there are any fines to pay or jobs to fill, they're cool.
Interesting that this news is hitting when it is...sounds like GE will have to pay the coin in this quarter. All the folks that backed this M&A decision should be forced to give back their salary to cover the $50000 eu fine per head not created. Frankly, if Siemens closed the deal they would have told France to go pound sand.
The mortgage-backed security could have been a good investment if the housing market hadn't crashed on 2008. The choice is simple here: be first or be smarter.
France forced Siemens to make an offer on Alstom. Now Siemens is rumored to be contemplating selling its Power division. The Alstom deal could have been been a good one if the power market hadn't tanked.
The mergers and acquisitions game is fraught with risk and misjudgement and there’s a rich history of large scale M&A going horribly wrong because an acquisition didn’t fit or its integration wasn’t managed properly. This is where you need a ceo who knows what he’s doing.
Siemens threw a bid there at the time to make sure GE paid a elevated price for a business that was headed for another French bail out. JI wanted to close the deal to make his mark that he could get a difficult deal closed before he retired. Unlike Jack who could not close the Honeywell deal before he retired. Just plan ego’s at work. In the case of the failed Honeywell deal , it was better they did not get bought by GE, they have much better with out the blue kook-aid and phony accounting. GE has never been good at integrating large companies. This is just another example of that...Also GE paid too much for this alstom business based upon current sales. Oh, well
Well, the choice was between Siemens and GE. I think that Siemens would have closed Belfort site.
The french government is very "candid",
So if you include the 30m fine for the French gov, you may say that instead of 15 bilion, they paid for Alstom 15.03 bilion. That's just 0.2% difference. French gov acted really childish to actually insist on that and make the deal depended on that. Or it was only a part of the PR strategy.
Never forget that John Flattery was a key part of the Alstom deal....
Wow, GE leadership at work ! Great job with that acquisition at Alstom ! And we wonder why GE stock price is for crap.
We all know GE, they are trying to get out of paying the fines or penalties for not creating the jobs. What amazes me is that the deal did not have an out for a significant event like the thermal power industry imploding. We all know you do not increase jobs when you have down cycle. What the French government does not know is Alstom staffed up 25 % when they knew GE was going to buy them, this was done here in US. Why , because they knew GE was going to slash and burn once the deal was done. Go check that nugget of info. No one am I mean no predicted GE would need to cut 12,000 jobs post Alstom purchase. There was not one US person that thought hiring a 1000 people located in France was a good idea. Yet, they inked the deal , so Flannery pay the fines! Better yet go take more out of JI retirement!
GE won't create those jobs. There is an agreement to pay 50k Euro for every job GE fails to create in France, which amounts to (only) 30 milion Euro, because they missed the target by about 600 jobs.
Ask execs who signed the deal to pay fines to get out of the agreement. Creating 1000 new jobs in France was part of the purchase agreement. You can't negotiate price three years after you buy something.
Grow up GE. No backsies in real business.
I guess the "IRS resolution" with IndustriALL was just fake news from the internal koolaid fountain then. Goodbye Greenville. Goodbye Schenectady.
They are forcing GE to uphold the deal they made with French government. So they way to solve this is Basically say Bye Bye Greenville and Schenectady
Quite amazing....the government is either totally clueless or they are so arrogant/entitled that they believe their position is correct.