General Electric Chief Executive Jeffrey Immelt said yesterday that companies in South Korea, Mexico and China are among the potential bidders for GE's appliance business. LG Electronics, based in South Korea, is "clearly one of the leading candidates to buy the appliance business," Immelt said. He also mentioned Haier Electronics Group of China and Controladora Mabe of Mexico. Analysts had previously identified the three companies as possible suitors for the Louisville-based appliance division. Electrolux, based in Sweden, also has been mentioned, and Immelt said there has been interest from Turkey as well. It would make sense for global firms to make a bid for the $7.2 billion business if they want to expand internationally, Immelt told a group of business leaders in Seoul.
LG CEO Nam Yong said Tuesday at a news conference in Seoul that the company was closely watching developments related to GE's appliance unit, adding that the outcome could reshape the entire industry.
LG Electronics said yesterday in a regulatory filing it has made no decisions on a possible bid. The Korea Exchange had earlier asked LG to clarify reports about its interest in the GE unit. The appliance division also could be spun off and turned into a stand-alone company. Either way, a deal is expected to be completed by early next year.
Mayor Jerry Abramson said yesterday that it's too soon to know which option would be best for Louisville.
GE has 5,500 workers who design, build and sell dishwashers, refrigerators and other machines. Charlie Logsdon, who has worked at the company's Appliance Park for 37 years, said he and other employees are worried about their job security, health insurance and retirement benefits. A spinoff would be better than a sale to an overseas company, he said. "What's scary is I always thought GE was going to be here," said Logsdon, of Georgetown, Ind., who earns about $22 an hour. "If something comes up where I can get out, I'm leaving."
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