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The case traces the evolution of Alstom from a family-owned company to an industrial diversified multinational which is currently in financial troubles. Alstom has been known for its technological excellence which ranges from the power generation industry to the high speed trains (TGV) - both France''s and Alstom''s flagship of technological success. In June 1998, GEC ALSTOM floated the company on the New York, London and Paris stock exchanges under the new company name ALSTOM. This IPO is now seen as the main reasons for Alstom''s current financial turmoil. It is said that synergies which were in place between Alstom and other subsidiaries of the former Alcatel-Alstom conglomerate were lost and value destroyed after the launch of the IPO. Furthermore Alstom had to pay a special dividend of 1.2 billion euros to Alcatel and General Electric Co which severely diminished its available cash flow and hence its capability to innovate and destroying its core competence. The case tries to illustrate the evolution of a French conglomerate and its relationship with the French state since its inception in 1898. Historically the French state has helped Alstom from its inception starting from establishing its technological prestige through the TGV project, de-merging Alstom from Alcatel, and finally when refinancing Alstom with a bail-out package of 3.4 billion euros to prevent it from going bankrupt. The case tries to understand the issues of competitive advantage of nations and the role of the state in the light of the Alstom example.