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Archive for Thursday, June 28, 2001

GE, EU officials reportedly in talks

June 28, 2001

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— General Electric Co. representatives conducted talks with European Union antitrust officials Wednesday that reportedly resulted in GE offering a last-ditch concession in an attempt to save the company's $41 billion bid for Honeywell International Inc.

GE proposed selling a minority stake of its aviation-financing unit, GE Capital Aviation Services, The Wall Street Journal reported on its Web site Wednesday evening.

The revised proposal would be contingent upon the divestiture of fewer Honeywell avionics businesses than what GE previously had offered, which had combined sales of about $2.2 billion, the Journal's sources said. It also would not require that the stake be held by competitors, the Journal said.

The GECAS board would add outside directors proportionate to the stake, they said.

Honeywell has an avionics plant in Lawrence.

A final EU ruling on the deal is expected Tuesday.

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