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Suitors line up for GE appliances | Suitors line up for GE appliances |
(about 3 hours later) | |
General Electric (GE) has named four companies it says are interested in buying its household appliances unit. | General Electric (GE) has named four companies it says are interested in buying its household appliances unit. |
It cited LG Electronics, China's Haier, Mabe of Mexico and Arcelik of Turkey as possible bidders for the unit, whose products include fridges and toasters. | It cited LG Electronics, China's Haier, Mabe of Mexico and Arcelik of Turkey as possible bidders for the unit, whose products include fridges and toasters. |
The US industrial giant said last month that it was likely to stop making household appliances after more than a century in the business. | The US industrial giant said last month that it was likely to stop making household appliances after more than a century in the business. |
It blamed the slowdown in US consumer spending and the housing slump. | It blamed the slowdown in US consumer spending and the housing slump. |
'Leading candidates' | 'Leading candidates' |
GE is carrying out a review of the business which is likely to result in it being sold or spun off. | GE is carrying out a review of the business which is likely to result in it being sold or spun off. |
GE-branded fridges, ovens and air conditioners have made the firm a household name, but the unit generated just 4% of total revenues in 2007. | GE-branded fridges, ovens and air conditioners have made the firm a household name, but the unit generated just 4% of total revenues in 2007. |
Analysts have said the business is worth about $7bn (£3.54bn). | |
It will be very intriguing to see what happens Jeff Immelt, GE chief executive | It will be very intriguing to see what happens Jeff Immelt, GE chief executive |
GE boss Jeff Immelt said a number of "leading candidates" had expressed interest in the business and that the process was likely to take between six and nine months. | GE boss Jeff Immelt said a number of "leading candidates" had expressed interest in the business and that the process was likely to take between six and nine months. |
"It will be very intriguing to see what happens," he said. | "It will be very intriguing to see what happens," he said. |
On a visit to South Korea, Mr Immelt praised LG Electronics, seen by some as the frontrunner in the bid battle. | On a visit to South Korea, Mr Immelt praised LG Electronics, seen by some as the frontrunner in the bid battle. |
"They are a great company. They already have a presence in the US. Strategically, there are many things to be admired about a combination of LG and GE Appliances," Mr Immelt said. | "They are a great company. They already have a presence in the US. Strategically, there are many things to be admired about a combination of LG and GE Appliances," Mr Immelt said. |
But analysts seemed cautious about LG's interest in the GE business and its shares fell more than 3% in trading on Wednesday. | But analysts seemed cautious about LG's interest in the GE business and its shares fell more than 3% in trading on Wednesday. |
"I doubt LG would be interested in pursuing this deal since there is little the company can gain," said Steve Lee, from Shinhan Securities. | "I doubt LG would be interested in pursuing this deal since there is little the company can gain," said Steve Lee, from Shinhan Securities. |
The US economic slowdown has hit GE hard. | The US economic slowdown has hit GE hard. |
It makes more money from jet engines than dishwashers and the appliances unit made revenues of just $7bn last year, a fraction of its total 2007 sales of $172.7bn. | |
GE's empire spans commercial and consumer financial services, jet engines, water treatment plants and medical equipment. It also owns media company NBC Universal. | GE's empire spans commercial and consumer financial services, jet engines, water treatment plants and medical equipment. It also owns media company NBC Universal. |