New
York, NY, Sept 12—General Electric and Honeywell International have separately
launched appeals against the European Commission's decision earlier this year to
block GE's planned $43 billion purchase of the diversified manufacturer. The two
appeals, which were not unexpected, were filed with the Court of First Instance
in Luxembourg. But the companies are not asking the EC to reverse its ruling and
let the merger proceed. Rather, they are appealing against some of the
Commission's conclusions in the case.
A Honeywell spokesman said its appeal argued that the European Commission's
findings were without merit. GE confirmed the appeal but had no further comment.
European Competition Commissioner Mario Monti in July rejected the purchase of
Honeywell by GE, the world's largest company in terms of stock market
capitalization, even though U.S. anti-trust authorities had cleared it.
According to the Financial Times, which cited a source close to the appeal, GE
is attacking several aspects of the ruling on substantive, procedural and
evidential grounds. The giant conglomerate is reported to be concerned that
competitors might use the Commission's conclusions against it in court or with
regulators.
In its ruling, the EC concluded that GE had a dominant position in the market
for jet engines for large commercial and regional aircraft. The EC's conclusion
that GE and Honeywell could have bundled aerospace products and services to
block rivals was also part of the appeals.
On the procedural front, GE is believed to have complained about the
Commission's apparent refusal to reveal the content of anonymous evidence it
received during its five month investigation of the proposed merger.
The Luxembourg court is expected to set a date for a hearing in the next few
months, but a final ruling will take at least a year.
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