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Non-Tech : General Electric (GE) -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (1689)	2/8/2001 9:37:42 AM
From: Wally Mastroly	Read Replies (1) \| Respond to of 3256

GE/Honeywell may encounter hurdles in Brussels By Lisa Jucca BRUSSELS, Feb 7 (Reuters) - The European Union could force General Electric Co. to make divestments if EU regulators decide its acquisition of Honeywell gives it too strong a position on the aircraft engine market, antitrust experts said on Wednesday. The deal, announced by U.S. conglomerate GE (NYSE:GE - news) and avionics firm Honeywell International Inc. (NYSE:HON - news) in October, was referred to the EU's antitrust watchdog on Monday. The European Commission, the EU's competition watchdog, must decide by March 6 whether to approve the deal or launch an in-depth, four-month probe. Companies can be forced to make concessions to win EU clearance if regulators determine that a deal presents competition problems. By acquiring Honeywell's avionics capacity, GE is looking to bolster its key aerospace, industrial systems, power and plastic businesses. GE has voiced confidence about getting a green light from the Commission and said on Tuesday it remained hopeful of completing the deal by the end of the first quarter. But competition experts say the companies would be asked to make some sacrifices if the Commission finds there are significant overlaps in their businesses. ``The one sector where there is overlap is aircraft engines,'' said a competition lawyer in Brussels. ``The parties seem to think there is no overlap because of the different size of the manufactured engines. But it really depends on how the Commission is going to define the market.'' GE and Honeywell both make aircraft engines. But while GE focuses on big thrust range engines, Honeywell only builds small aircraft engines. ENGINE QUESTION Experts argue that it is difficult to draw a line between the two markets as four smaller engines or two larger ones could be used to drive some planes. Another area which is likely to raise possible concerns with the EU's antitrust taskforce is whether the merged company would use its pre-eminence in certain markets to increase its strength in related markets. biz.yahoo.com

To: Arthur Tang who wrote (1689)	2/8/2001 9:24:35 PM
From: Victor Lazlo	Read Replies (1) \| Respond to of 3256

Arthur- <<Good management knows how to squeeze more earnings out of a revenue that past management due to their set policy which restricted them to look at some of the hidden values. With GE's strength(financial and management), the hidden values will change by the merger. >> Like all the hidden values in Montgomery Ward, the bankrupt subsid of GE? Guess GE should have managed that one a little better, or taken decisive action when it would have helped- one or the other. <<Then there is the scale factor, reduction of overhead and inefficiency, which is duck soup for Mr. Welch. >> They are cutting 42% of the Hon people, so I guess there will be a lot less "scale" to worry about!! If you know anything about these things, you know that usually a lot of good people get cut, and a lot of fatheads stay on, and then more good people leave on their own because of this! Why did GE pay so much for Hon if it is overstaffed by 42% ? <<There are further consideration in some of the combined strength in selected industries. >> GE bought a lot of low margin bus in Hon <<Currently, of course, the focus is on seeking value and direction of the combined company. I hope there is no management philosophy conflicts >> sounds like consultant-ese to me; I have no idea what you are saying. But I do know that mgt consultants get lots of work from deals like these so I am not suprised you are trying to make it sound like a good move for GE... Welch just wanted one final big trophy. But he won't be around to help make the mess work. regards, Victor