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Alstom slaps down mystery bid
PARIS, France (Reuters) -- French heavy engineer Alstom on Tuesday cast doubt on a takeover offer it said it had received from a mystery bidder, and warned investors to be cautious after they pushed its battered stock up 20 percent. Alstom, which is dumping key businesses to avert a cash crunch, said a company called MJ Global Acquisition had offered to buy all its capital, but said the firm was "totally unknown to the financial community,'' and not been clearly identified. "Alstom confirms having received a letter from a company named MJ Global Acquisition, communicating its wish to acquire the whole of Alstom's capital, and whose seriousness appeared doubtful,'' Alstom said in a statement. The French firm, which makes ultra-fast TGV trains, gas turbines and cruise ships, said its advisors were investigating the offer, but meanwhile urged investors to be cautious. Shares in Alstom leapt over 20 percent after a report on website efinancialnews.com on Monday that Dutch financier Matthew Jean had offered two euros per share for the cash-starved firm and planned to raise his offer. Bankers and brokers in London, Paris and Amsterdam told Reuters they had not heard of the investor, who according to the website made his fortune in commodities. The Amsterdam branch of the Dutch Chamber of Commerce said neither Jean nor MJ Global Acquisition was registered on their database. efinancialnews reported that Alstom had rejected the offer by investor Matthew Jean made about two weeks ago, which would value the company at 563 million euros. But it said he may raise his bid to 2.50 euros this week -- a 77 percent premium to Monday's closing price of 1.41 euros that would give it a market capitalisation of 704 million euros. The website said Jean would consider making a hostile bid. "There are many raiders around, and speculators would clearly consider Alstom as undervalued, but this level of offer would not be acceptable to Alstom,'' a source close to the company said. "None of the banks have ever heard of this Jean, it doesn't look very safe,'' he added. The stock, which has plunged 65 percent so far this year, trimmed gains after Alstom's statement but was still up 13.5 percent at 1.60 euros at 1005 GMT. Dumping assetsAlstom said in March it would dump key businesses and launch a 600 million euro capital increase to help mend its balance sheet and keep its creditors at bay. Alstom managed to get its banks to agree to an extra one billion euro credit line that will get it through the next few months, but this depends on the success of a capital increase. The company is ditching its most profitable business, Transport and Distrubution, in an attempt to raise cash fast. Many analysts reckon the banks are now running the firm and say it has little value for equity investors. Alstom has racked up gross debt of five billion euros, or as much as 7.5 billion including off-balance sheet liabilities, according to some analysts, who blame a spate of technical glitches and bad cash management. efinancialnews, citing Jean's adviser James Williams, said Jean had three billion euros in backing from Japanese investors and said he was being advised by a small U.S. investment bank, United Bankers Global, and Franklin, a French law firm based down the road from Alstom in Paris. Franklin declined to comment on the article. Copyright 2003 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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