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.
The logo of Alstom is seen before a news conference to present the company's full year 2016/17 annual results in Saint-Ouen, near Paris, France, May 4, 2017. REUTERS/Gonzalo Fuentes
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