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To: Earlie who wrote (109240)	6/18/2001 5:29:06 PM
From: patron_anejo_por_favor	Respond to of 436258

GE-HON dispute has the makings of an all-out trade war. How dare they spit in Lord Welch's face!<G> cbs.marketwatch.com GE-Honeywell sparks 'uncertainty' Senators cite 'divergence' of U.S., EU opinion on deal By Matt Andrejczak, CBS.MarketWatch.com Last Update: 1:42 PM ET June 18, 2001 WASHINGTON (CBS.MW) -- Top lawmakers on the Senate antitrust subcommittee plan to examine why U.S. and European trustbusters reached far different conclusions on General Electric's bid to acquire Honeywell International. Subcommittee Chairman Herb Kohl and Sen. Mike DeWine, the panel's ranking Republican, said they intend to evaluate the standard review procedures used by the U.S. Justice Department and by the European Commission, the economic competition arm of the European Union, to determine if a deal should be approved or blocked. In a statement Friday, they said "uncertainty" about the rules governing the coordination and legal groundwork between the Justice Department and the EU could hinder free trade and impede U.S. companies' global expansion efforts. "We intend to make further inquiries into whether the divergence between American and EU opinion is evidence of a rift in coordination and legal standards or is the product of a legitimate difference in opinion," the lawmakers said. "We have a strong interest in assuring a stable and clear legal environment in which businesses can pursue their activities." GE (GE: news, msgs, alerts) has acknowledged its acquisition of Honeywell (HON: news, msgs, alerts) is unlikely to be approved by the EU because its proposed divestitures fall far short of what is expected by the Brussels-based organization's regulators. The EU is expected to reach a decision as soon as July 4; its deadline for a decision is July 12. See full story. Two sides of the same coin? Indeed, there are differences of opinion on how the deal may affect competition on both sides of the Atlantic. The Justice Department tentatively approved the merger with only minor conditions on April 2. The agreement called for GE to divest Honeywell's military helicopter engine business and authorize an additional U.S.-based third-party provider to service certain Honeywell aircraft engines and auxiliary power units. This wouldn't be the first time that Kohl and DeWine have expressed concern about coordination between American and European antitrust authorities. Last October, in a letter to EU competition chief Mario Monti, they questioned if "pan-European protectionism" rather than "sound competition policy" may have fueled the EU's decision to block WorldCom's deal to purchase Sprint as well as its stated objections to block Time Warner's proposed buyout of U.K.-based music label EMI. At this point, it is unclear if the lawmakers plan to schedule any congressional hearings to address the matter.