Rent-to-own News - LG undecided on GE appliance bid
May 28, 2008
As of Wednesday, LG Electronics remains undecided on a potential bid for General Electric's appliance unit, according to the Associated Press.
"We're reviewing the possible impact of the sale of GE's appliances unit on our company, but we haven't decided anything yet," LG said in a regulatory filing.
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The Korea Exchange earlier Wednesday, asked LG to clarify statements made by LG Chief Executive Yong Nam Tuesday, that his company was closely watching developments related to GE's appliance unit.
Nam added that the entire appliance industry could be reshaped by the outcome of what happens to GE's $7.2 billion century-old appliance division, which GE announced two weeks ago that it might sell or spin off in an ongoing restructuring plan.
Jeffrey Immelt, GE's chief executive, said Wednesday in Seoul, Korea that LG Electronics is one of the leading candidates for the appliance unit -- a short list which includes Haier Electronics Group Co. of China and Mexico's Controladora Mabe. Interest has also come from Turkey, he said.
"LG was clearly one of the leading candidates," Immelt said. "It will be very intriguing to see what happens."
In February LG entered into a cross licensing agreement with GE Consumer & Industrial that will allow LG and GE to use one another’s patents for refrigerators and cooking appliances without paying licensing fees.
mevans@rtohq.org
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