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GE may appeal EC ruling
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August 1, 2001: 1:18 p.m. ET
Commission's ruling could prevent future acquisitions by the company
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NEW YORK (CNNfn) - General Electric is planning to appeal the European Commission's rejection of its proposed $42 billion purchase of Honeywell International in a bid to nullify the ruling, which, if left unchallenged, could prevent the company from making future acquisitions on either side of the Atlantic.
The appeal is not an attempt by GE (GE: down $0.79 to $42.71, Research, Estimates) to revive the failed deal, but that the company is concerned the European Union's ruling certifies the view on record that its regulators consider GE as having a monopoly in the aerospace market, according to an AP report citing a source familiar with the matter.
The appeal must be filed by the end of September under European law, would mark only the seventh time a company has appealed a decision by the commission to block a deal. If GE loses there, it can then go to the European Court of Justice in Luxembourg.
GE declined to comment on its plans, saying the company is "reviewing its options," according to a company spokesman.
But the odds are steep against GE. The commission has not overturned a decision to block a corporate deal in over a decade.
Of six merger prohibitions appealed, three have been upheld and the others are pending, including last year's failed WorldCom (WCOM: up $0.92 to $14.92, Research, Estimates)-Sprint (PCS: up $0.46 to $26.38, Research, Estimates) deal.
"We have no knowledge of any action GE may plan to take. GE has not contacted the EC that I'm aware of and there is no reason for them to do so," a spokesman for competition commissioner Mario Monti said. 
-- from staff and wire reports
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