GE, Honeywell Appeal Decision
According to the European Court of Justice, the two companies filed separately with the court’s appeals division. The court allows appeals only on procedural matters.
Tom Crane, Honeywell spokesman, said, “The appeals argue that the European Commission’s findings are without merit.” He added, “It’s important to note that the appeals have no effect on our merger agreement.”
It is believed that GE is concerned about the European Commission’s language in turning down the merger. The combination of two major companies in the aviation business was a major concern of the commission and Mario Monti, competition commissioner. He and his colleagues cited a possible dominant market position as a problem area.
Letting stand a finding of a dominant position, experts attest, could possibly block GE from future mergers.
It is believed that the appeal process makes it highly unlikely that the merger can be saved.
Publication date: 09/24/2001