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News > Companies
GE to sell Honeywell unit?
June 5, 2001: 6:36 p.m. ET

Company mulls selling jet engine unit as part of $40B takeover
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NEW YORK (CNNfn) - General Electric Co. is considering selling the regional-jet engine business of Honeywell International Inc. to overcome European regulatory opposition to its $40 billion Honeywell takeover, according to press reports.

Fairfield, Conn.-based GE (GE: down $0.27 to $49.18, Research, Estimates)  floated the proposal during a meeting with the European Commission's antitrust enforcers Tuesday. The proposal signals that the highly diversified manufacturer and financial services firm could cave in to the regulators, the Wall Street Journal's online edition said Tuesday.

Regulators are also expected to press GE to separate the accounts and management of Gecas, its aircraft leasing arm, the Financial Times.com said.

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GE Chairman and CEO Jack Welch will discuss the remedies with EU Competition Commissioner Mario Monti on Friday in Brussels.

The $40 billion merger of GE and Honeywell will create a near-monopoly on engines for large regional jets, press reports said.

GE's aircraft leasing arm, Gecas, offers aircraft financing, leasing and fleet management. Euro regulators are concerned about GE's ability to bundle products when offering equipment to airlines.

The Commission is understood to want GE to separate Gecas to make it more difficult for it to cross-subsidize its product offerings to airlines, press reports said.

Both GE and Honeywell (HON: up $0.10 to $48.84, Research, Estimates)  declined comment. graphic

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