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To: Tony Viola who wrote (138837)	7/8/2001 1:24:12 PM
From: Dave	Respond to of 186894

Tony, I, too, was shocked that the EU blocked the merger. To put simply, the EU's rationale was because of GE's GECAS unit. GECAS is GE's leasing arm which leases airplanes. However, GECAS has only a 10% market share. The EU and other competitors basically stated that with vertical integration, i.e. financing, GE engines and HON avionics, that GE would put other competitors out of business. Personally, I don't understand that logic given that GECAS has only a 10% share of the aircraft market.... EDIT: Additionally, I think i read that the decision that the EU made is not appealable either. Meaning that GE couldn't appeal it up to the European courts. For whatever that's worth....