Updated, 8:11 a.m. | PARIS - Shares of the French industrial conglomerate Alstom, which makes high-speed trains and energy turbines, soared on Thursday on a report that General Electric was seeking to buy the company for about $13 billion.
Alstom, which is seen in France as one of the crown jewels of the country’s industrial sector, initially rose about 17 percent on the Paris exchange, even after the company issued a brief statement before trading began saying that it was not aware of any takeover offer.
By early afternoon, the shares were up about 14 percent, giving the company a market value of about 8.5 billion euros, or $11.8 billion. General Electric has a market value of about $264 billion.
Bloomberg News reported late on Wednesday that G.E. was looking to make Alstom its largest-ever acquisition as G.E.’s chief executive, Jeffrey R. Immelt, tries turn to around G.E.’s moribund stock.
Alstom said in its statement: “In response to recent speculation in the economic press, Alstom is not informed of any potential public tender offer for the shares of the company. The group constantly reviews the strategic options of its businesses.â€
David Cook, a G.E. spokesman, said the company frequently received questions about mergers and acquisition activity, “so we have a simple policy of not commenting on rumor or speculation.â€
Bloomberg News did not identify the source of its information, which it attributed to “people with knowledge of the talks.†It said G.E. was looking to refocus its activities on core industrial areas and could use its foreign cash reserves, now about $57 billion, to finance a deal.
Alstom is a global leader in the areas of power generation, including nuclear and wind turbines, as well as in power transmission and rail infrastructure. It has been struggling to find its footing amid weak demand in Europe and increasing competition from Asia.
Alstom said this month that it would sell part of its thermal power business to the private equity firm Triton Partners for $1 billion. And it has been considering a spinoff of its rail unit to help raise cash at a time when large orders have been scarce.
Still, any takeover bid is certain to raise hackles in the French establishment. Facing bankruptcy in 2004, Alstom received a €2.2 billion bailout from the government of former President Jacques Chirac, in a deal led by Nicolas Sarkozy, the finance minister at that time. The state later sold the stake it gained in that operation to the French construction and engineering contractor Bouygues.
France’s current economy minister, Arnaud Montebourg, has made a name for himself in a series of highly public disputes with foreign investors, and it seems unlikely that he will be able to remain on the sidelines if a G.E. offer is forthcoming.
Prime Minister Manuel Valls of France dismissed the Bloomberg News report as “rumors†and referred journalists to Alstom’s statement, Agence France-Presse reported on Thursday.
“With Alstom, as with all the great French groups, we are attentive,†Mr. Valls told the news agency, adding that was particularly the case concerning questions of “jobs and technology, and where the decisions are made.â€
Alstom said it would have more information about its plans when it announces its annual results on May 7.
Bouygues, which owns 29.3 percent of Alstom, did not immediately reply to a request for comment. Shares of Bouygues rose 4.9 percent in Paris on Thursday.
