According to reports from France, Alstom is in the process of selling its Power Conversion division - which covers its drives and motors activities - to a management team, backed by Barclays Private Equity France. According to one report, the deal could be worth around €500m although other estimates put the price in the range €150-180m.

Last month, the European Commission approved the proposed deal under its simplified merger review procedure.

Alstom is having to sell the division as part a divestment programme that the Commission insisted on last year before it would approve a financial rescue package for Alstom, arranged by the French government.

The divested business is likely to need a new name.

The Power Conversion division produces drives and soft-starts for applications from a few kilowatts to more than 100MW. Its motors portfolio includes: LV and MV induction motors up to 11kV and 2.5MW, including totally enclosed fan-cooled machines and explosion-proof EExd motors; synchronous motors in ratings up to 100MW; and high-speed motors capable of speeds of up to 90,000 rpm. The division`s specialities include marine propulsion motors and water-cooled drives.