We have often said that General Electric (GE, quote) is one of the great global companies who rely on Emerging Markets (EEM, quote) for their growth and one of the great long term investments for your portfolio.ge-logo Having said that, they also are committed to certain sectors where they dominate developed markets as well. 

When it comes to energy (XLE, quote) and power grid related businesses, they are a core player in Europe.  The recently announced bid for France's Alstom (ALO, quote) is a great strategic fit.  The problem is this is a complicated political football for France, and thus the best man may not win the battle.

The battle is heating up and GE investors should pay close attention.  GE derives more than 50% of their operational income from international sources.  Their Emerging Market commitment is undisputed even in places like Russia (RSX, quote), Africa (EZA, quote) and China (FXI, quote) when the tide gets rough. 

GE will continue to recognize that they are the leader in power, water, aviation, turbines, energy and infrastructure for places that need this en masse.

This deal is far more accretive to GE than Siemans (SI, quote).  GE has been stalking Alstom for years.  Jeff Immelt was intense in his pursuit back in 2009.  Siemens only playing defense in their bid as they compete in Europe with GE daily on power.  

GE is cheap on SOTP basis and the discount attached to their business is slowly going to fade as they sell off non-core assets like GE Cap.  When looking at GE on the charts, $28.00 is the peak level it traded into 2013 year end. 

The stock recently broke out of a technical convergence of the 50mda, 100mda, 200mda and will test $28.00 on pure fundamentals if they are not drawn into an expensive battle for control of Alstom.

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