EU sees chance for approval of GE's bid for Honeywell
Tuesday, June 12, 2001
STOCKHOLM -- General Electric Company's $45 billion takeover of Honeywell International Inc. has a "reasonable chance" of winning European approval, the head of
the European Commission's antitrust department said.
Regulators haven't formed a "definite view" on limits the agency may require of General Electric's plane-leasing unit, Alexander Schaub said. The commission is concerned
that adding Honeywell to GE's jet engines and the leasing unit may give GE an unfair advantage in commercial aerospace markets.
"We have to wait to see what they are proposing and then we must make up our minds," said Schaub, the top aide to Competition Commissioner Mario Monti.
The Financial Times and Wall Street Journal had reported, citing unnamed sources, that the commission might force GE to sell or spin off the GE Capital Aviation Services
unit to shareholders. Such a move would likely prompt the company to walk away from the purchase, analysts and investors have said.
General Electric has until Thursday to propose remedies for the concerns raised by the commission. The agency will issue a decision by July 12.
Analysts and investors said they're still optimistic the purchase will be approved, adding it's unlikely that European Union regulators would force GE to sell the leasing unit.
-- Bloomberg News
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