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Alstom shares surge on Siemens rail tie-up
[PARIS] Shares in French manufacturing group Alstom surged on Wednesday after German engineering group Siemens and Alstom agreed to merge their rail operations.
Alstom shares were up 7 per cent in early trading, the top-performing stock on France's SBF-120 index, touching their highest level since July 2011.
Siemens shares advanced 1.2 per cent.
"Alstom shareholders are to receive two extraordinary dividends totalling 8 euros. If successful, this deal should in our view create significant value for both parties," Barclays analysts wrote in a research note.
Shares in French conglomerate Bouygues, which has a stake in Alstom, rose 2 per cent to be the top performer on France's benchmark CAC-40 index.