September 27, 2017 / 7:24 AM / 4 months ago

Alstom shares surge on Siemens rail tie-up

PARIS (Reuters) - Shares in French manufacturing group Alstom (ALSO.PA) surged on Wednesday after German engineering group Siemens (SIEGn.DE) and Alstom agreed to merge their rail operations.

Alstom shares were up 7 percent in early trading, the top-performing stock on France's SBF-120 index .SBF120, touching their highest level since July 2011.

    Siemens shares advanced 1.2 percent.

    “Alstom shareholders are to receive two extraordinary dividends totalling 8 euros ($9.40). 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 (BOUY.PA), which has a stake in Alstom, rose 2 percent to be the top performer on France's benchmark CAC-40 index .FCHI.

    Reporting by Sudip Kar-Gupta, editing by Louise Heavens

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