GE says appliances unit not for sale
17 Nov 2008
Mumbai: General Electric has put the sale of its consumer appliances unit on hold after Haier, China's largest maker of home appliances, decided not to bid for the unit until clear signs of a US market recovery emerged, sources close to the developments said.
GE has recently been on the lookout for a strategic partner for its appliances business, and Haier was widely expected to bid as it may be its last opportunity to buy an American household brand and through it, the global consumer.
Now, GE has clarified that the unit is not up for sale at all. It did not give any reasons, but merely attributed its decision to ''dearth of serious buyers in the market, depressed sentiments and flawed business model have amplified the company's problems''.
Reports, meanwhile, said a number of employees at the unit's research and development centre in Bangalore had quit the organisation.
Several consumer durable makers, including China's Haier, Korea's LG, Mexico's Controladora Mabe, and Turkey's Arcelik, were expected to bid for the unit. GE had also approached Videocon's Venugopal Dhoot to sell the unit, but to no avail.
GE India's president and CEO Tejpreet Chopra, speaking to news agencies, said that the unit is not for sale.
