The proposed deal would be for the thermal, renewable and grid sectors of Alstom's energy business. It stated that it would now review the bid before the end of May and, if completed, would use the cash to strengthen its transport arm.
Alstom's shares have been suspended on the Paris stock exchange since last Thursday. When they resumed trading Wednesday morning, they jumped 11 percent to nearly 30 euros.
Jeff Immelt, GE Chairman and CEO, said that the potential tie-up is expected to provide an excellent return on capital and advances the U.S. company's strategic priorities and industrial growth.
"We respect and value the deep industry and technology expertise of Alstom employees and expect them to add to our proven track record of developing talent and leadership in France and globally," Immelt said in the press release. Patrick Kron, Chairman and CEO at Alstom added that the deal would create a more "competitive entity" and Alstom's employees would join a well-known, major global player.