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GE, Honeywell consider abandoning merger
General Electric Co and Honeywell International Inc were on Saturday `actively considering` abandoning their proposed merger and withdrawing their application for approval of the merger from the European Commission, a source close to the situation said.
General Electric Co and Honeywell International Inc were on Saturday 'actively considering' abandoning their proposed merger and withdrawing their application for approval of the merger from the European Commission, a source close to the situation said.
The 20-member Commission has scheduled a vote for Tuesday on whether the merger meets the restrictions of EU rules.
All sides expect the Commission not to approve the transaction but should the companies withdraw their proposal no vote will take place.
On Friday, final glimmers of hope that the deal would go through faded as GE Chief Executive Officer Jack Welch rejected a last-minute suggestion by his counterpart at Honeywell, Michael Bonsignore, to slash $1.7 billion from GE's price tag to compensate GE for extra divestitures in order to win approval from the EC for the merger. A source close to the situation said then that GE had no plans to negotiate further with European regulators.
Shares of financially troubled Honeywell sank on the news, dropping $3.21, or 8.4 percent, to close at $34.99 on the New York Stock Exchange, their lowest close since October 18, five days before the deal with GE was announced. GE shares fell 12 cents to $48.75.
Based on GE's closing share price on Friday, the value of deal -- including Honeywell's last ditch offer -- would have been $39.9 billion. Bureau Report
All sides expect the Commission not to approve the transaction but should the companies withdraw their proposal no vote will take place.
On Friday, final glimmers of hope that the deal would go through faded as GE Chief Executive Officer Jack Welch rejected a last-minute suggestion by his counterpart at Honeywell, Michael Bonsignore, to slash $1.7 billion from GE's price tag to compensate GE for extra divestitures in order to win approval from the EC for the merger. A source close to the situation said then that GE had no plans to negotiate further with European regulators.
Shares of financially troubled Honeywell sank on the news, dropping $3.21, or 8.4 percent, to close at $34.99 on the New York Stock Exchange, their lowest close since October 18, five days before the deal with GE was announced. GE shares fell 12 cents to $48.75.
Based on GE's closing share price on Friday, the value of deal -- including Honeywell's last ditch offer -- would have been $39.9 billion. Bureau Report