UPDATE 1-Alstom CEO rules out further cash calls
* Capital hike not motivated by business deterioration
* Rules out further cash calls
(Adds CEO comments, details)
PARIS, Oct 4 (Reuters) - Alstom's chief executive ruled out any more cash calls after its recent 350 million euro ($451.55 million) capital hike and said that the increase was not intended to cover any negative business developments.
The French transport and power engineering company surprised investors on Monday with news of the increase, saying the cash would finance an investment in a Russian rail equipment firm.
Alstom's shares have declined around 5 percent since the announcement of the cash call.
"The objective was to finance this acquisition without putting pressure on debt," Patrick Kron told reporters during a conference call.
Alstom will use the cash from the capital hike to fund a payment of around $350 million related to a deal under which Alstom is buying a 25 percent stake in Transmashholding, Russia's largest maker of locomotives and rail equipment.
The acquisition will allow the company to strengthen its position in the burgeoning rail transport sector in Russia.
Alstom - which makes commuter and high-speed trains, wind turbines and turbines for power stations - also on Monday reconfirmed its previous sales growth, operating margin and cash flow targets.
At 1000 GMT its shares were trading 0.2 percent higher at 26.81 euros, outperforming the CAC40 index , down 0.3 percent.
($1 = 0.7751 euros) (Reporting by Elena Berton)
Keywords: ALSTOM CEO/