General Electric has presented a revised proposal for the power and grid business of France's Alstom to the French government, after French President Francois Hollande told GE and rival Siemens they need to improve their competing offers.
Under the new proposal, General Electric will form three new joint ventures with Alstom, and will sell its signaling business to the firm for an undisclosed price. The price will be adjusted lower to reflect the joint ventures and the sale of GE's signaling business, GE CEO Jeff Immelt said in a press briefing on Thursday. He added that the enterprise value would not change.
At a news conference in Paris, GE's CEO Jeff Immelt said the revised offer will lower the price of the deal.
"There will be an adjustment," Immelt said, adding that GE is still working on the price of the revised deal.
Back on April 30, GE offered to buy Alstom's power business for $17 billion. This week, Germany's Siemens and Japan's Mitsubishi Heavy Industries countered with a $19.3 billion offer that would have Siemens buying Alstom's gas turbine business and Mitsubishi taking a minority stake in the company.
Alstom's board is expected to vote on the new proposal before a June 23 deadline.
The new offer from Fairfield, Connecticut-based GE allows for the two companies to form a 50-50 joint venture that combines their grid businesses. Like the other proposed JV's it would be based in France. Additionally, they would form a 50-50 joint venture in renewables that would contain Alstom's offshore wind and hydro businesses, but not GE's.
The last joint venture would be in the nuclear business. The French government would hold a preferred share in this business, giving it veto power over any projects or issues the government fears could compromise the security and technology of its nuclear plants.
With GE buying Alstom's power business, the last part of the revised offer aims to strengthen Alstom's remaining transportation business. A maker of high-speed trains, Alstom would buy GE's signaling business for an undisclosed price.
When GE's original offer was announced back in April, there were concerns Alstom's weaker transportation business might not survive on its own.
To win what would be the biggest deal of Immelt's tenure at GE, the conglomerate has already promised the French government it will create 1,000 new jobs in France.
—By CNBC's Mary Thompson
CORRECTION: This version corrects that the French government can access intellectual property in a proposed joint nuclear venture.