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Siemens, Mitsubishi look to derail GE-Alstom deal

By WTOP Staff

DAVID RISING
Associated Press

BERLIN (AP) — Engineering giants Siemens of Germany and Mitsubishi Heavy Industries of Japan on Monday jointly offered to buy parts of France’s Alstom and start a long-term partnership, a move that could derail a competing bid by General Electric.

Siemens AG said it is offering 3.9 billion euros ($5.3 billion) to acquire Alstom’s gas business entirely, including related service contracts. Mitsubishi would purchase a 10 percent stake of Alstom and inject 3.1 billion euros into the company.

Struggling Alstom already has a $17 billion offer on the table from General Electric Co. for its energy operations, but the French government has been cool to the idea of a buyout of a company that pioneered TGV high-speed trains, later exporting them around the world, and which builds nuclear turbines.

Siemens and Mitsubishi promised their proposal would “preserve Alstom’s current perimeter in almost all its activities, enhance its industrial sustainability, strengthen its position as a diversified global player in energy and transport, and strengthen its financial structure, while remaining a major French listed group.”

Alstom said in a statement the chiefs of Siemens and Mitsubishi outlined the proposal for Alstom’s energy activities in a meeting Monday with Alstom CEO Patrick Kron and Jean-Martin Folz, who heads a committee evaluating the offers.

French President Francois Hollande, who has said GE’s offer is not good enough, is to meet with the Siemens and Mitsubishi CEOs on Tuesday to discuss their proposal. While the French government finds GE appealing because of its long presence in France, it has tried to get other potential suitors for a company considered strategic because of its footprint on the energy and transport sectors.

A ranking French official said in April the French priority in all matters is jobs, energy independence and keeping companies on French soil.

In addition to the cash transaction, Siemens said it would offer job guarantees for three years in France and Germany for the transferred business, and would establish its European headquarters for the combined gas service business in France.

Siemens also indicated that, following the closing of the deal, it would eventually “be prepared to become a long-term anchor shareholder in a combined transport business.”

Siemens has 359,000 employees worldwide and makes everything from gas- and wind-powered turbines to trains, medical imaging devices, factory machines and security equipment.

Mitsubishi Heavy is Japan’s largest heavy machinery maker with $32 billion in annual revenue. It produces ships, engines, nuclear power plants and arms for Japan’s defense ministry.

Meanwhile, GE began an ad campaign — “Tomorrow will be Made in France” — in a bid to address concerns that the country could lose a strategic company with its offer. The full-page ad in French newspapers refers repeatedly to “our alliance” and says besides the 1,000 new jobs to be created as part of the offer “thousands of indirect jobs” would be generated.

Alstom is to make a decision about where its future lies in a week.

_____

Elaine Ganley and Sylvie Corbet in Paris contributed to this report.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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