EU slams GE-deal critics

June 18, 2001 Posted: 1203 GMT

LONDON (CNN) -- EU Commissioner Mario Monti attacked as "unjustified" criticisms of the EU's handling of General Electric's proposed takeover of Honeywell.

GE, the world's most valuable company, said last week it would not be prepared to meet conditions set out by EU anti-trust authorities to clear its proposed $41 billion purchase of Honeywell.

European Union regulators are concerned a merged GE-Honeywell could exploit its dominance in aircraft engines to gain an edge in other areas in aerospace such as avionics, aeroplane leasing and engine servicing.

Monti criticized "political interference" in the case, which has been approved by U.S. and Canadian regulators, following comments made by President George W. Bush voicing concern about the EU Commission's review.

Monti told a press conference: "I deplore attempts to misinform the public and to trigger political intervention. This is out of place in an anti-trust case and has no impact on the Commission."

A row erupted between European company Airbus and arch-rival, Boeing after the U.S. aerospace giant accused Airbus of leading opposition to the takeover.

French daily newspaper Le Monde had quoted Boeing president Harry Stonecipher as claiming Airbus had fought the deal as it would merge GE's engine business with Honeywell – a key aircraft electronics supplier.

EU competition spokeswoman Amelia Torres told the Associated Press: The accusations are totally unfounded. Airbus has not been very active in discussions, nor has Boeing."

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