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GE, Honeywell Appeal EU Decision
Article Number: 50
 

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.

Copyright 2001 Floor Focus Inc

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Date
9/13/2001 5:57:00 PM
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