General Electric Company (NYSE:GE) announced that it will consider a few negotiations in order to obtain consent in its mission to acquire a big proportion of ALSTOM India Ltd (NSE:AIL).
The Chief Executive Officer of General Electric Steve Bolze spoke in a telephone interview where he said that his company is open to alternative solutions in making sure that contractual agreements are reached. He also said that the company has a lot of faith in the benefits that both parties stand to accrue from the deal
Bolze spoke sometime after the European Union supervisory body suggested that the acquisition review process be paused temporarily. The given time will allow Alstom to carry out further investigations and research on the American company. This will give the company a better position to negotiate the terms.
The decision may derail the timeline European Commission’s timeline for evaluating the terms and conditions of the contract. However, if the Union restores the motion, the European Commission might maintain the schedule. GE’s official plan was to wind up the whole process before the end of 2015. It even had plans to maintain the initial terms of the contract.
The imposed delay has started to bring worry upon the company’s officials and employees. The Merger was announced in 2014 and seems to be taking off at a sluggish pace. In addition, the level of bureaucracy involved in the process seems to be adding on to the delays.
General Electric Company (NYSE:GE) is particularly interested in the success of the Alstom merger because it does not plan of failing like it did with the Honeywell merger. Therefore, the company is hot on its heels to provide any necessities to the European Commission in an effort to boost the timeline.
One of the company’s spokespersons announced that the delay was a technical phase, and GE expects the review process to resume within one week. A few other concerns for the company arose after watchdogs tried to bring in objections citing possible competition disquiets.