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Empresas y finanzas

France issues law to block foreign takeovers of strategic firms


    PARIS (Reuters) - The French government, in a surprise move, has issued a decree that will allow it to block any foreign takeovers of French companies in strategic industries like transport and energy.

    A decree published in the official state gazette on Thursday, and seen by Reuters, will give the state much-increased powers to block takeovers like General Electric's planned $16.9 billion bid for the energy assets of French engineering group Alstom .

    Any takeover in the energy, water, transport, telecoms and health sectors will now need the approval of the Economy Minister, the decree published in France's Official Journal said.

    The government had not said it was considering such a measure, which has not been discussed publicly.

    Economy and Industry Minister Arnaud Montebourg has openly criticized the Alstom-GE proposal and instead advocated a European tie-up with Germany's Siemens . Alstom has given itself until the end of the month to review its options.

    "With this decree, we're armed to continue discussions and negotiations with the two companies that have expressed an interest," a source close to Montebourg said.

    Cash-strapped Alstom, the maker of France's prestigious high-speed trains, was bailed out by the French government a decade ago and is seen by many in France as the embodiment of the country's engineering prowess.

    (Reporting by Jean-Baptiste Vey and Benjamin Mallet; Writing by Michel Rose; editing by Geert De Clercq and David Evans)