Image copyright AFP Image caption Alstom makes the high-speed TGV train

Shares in French engineering company Alstom have jumped after a report that US multinational General Electric is in talks to buy Alstom for $13bn.

News agency Bloomberg reported that GE and Alstom have discussed the potential deal with the French government.

Alstom has said it has not been told of a potential offer for the company.

Alstom - which makes turbines and trains - said it would update investors on its prospects on 7 May, when it releases annual results.

Shares in the firm jumped 17% at the start of trade, before falling back to close up 11%.

Shares in major Alstom shareholder Bouygues also rose after the Bloomberg report.

An agreement between Alstom and General Electric may be announced next week, the report said.

But in a statement, Alstom said: "In response to recent speculation in the economic press, Alstom is not informed of any potential public tender offer for the shares of the company.

"The group constantly reviews the strategic options of its businesses."

In the year to March, Alstom shares dropped by about 30% over concerns about its cash flow.

In January, the firm said that its full year profits had been hit by a drop in demand for power plants.

The French company, which employs 93,000 people, has business interests in about 100 countries.

In November, the company said it would cut 1,300 jobs, and sell part of its transport business, which makes high-speed TGV trains, and has supplied Eurostar trains.