Not that we need more proof that it's a tough M&A market in which to be a seller, but the
International Herald Tribune reported on Thursday that Qindao Haier Ltd. has decided to hold off on a bid for General Electric Co.'s appliance division. The paper quoted a source as saying that China's largest home appliance maker is interested in GE's assets, but "we just can't see any clear sign of when the U.S. markets, in particular its real estate market, can recover. ... We don't know where the bottom is." As we noted in June, Haier had reportedly
approached investment banks about a possible bid.
GE put its appliance unit on the block in May as part of chief executive Jeff Immelt's plan to trim the company's portfolio. The appliance unit contributes about 8% to GE's bottom line. Immelt has also said he might consider
spinning off the unit.
The report on Haier may be disappointing news for GE, but it probably makes the folks happy in Louisville, Ky., home to GE's appliance unit. More than 5,000 locals work at Appliance Park, and city officials have been
highly critical of Immelt's plan to sell.
- Suzanne Stevens
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