GE of Britain Bids $1.7 Billion for Plessey Co.
General Electric PLC of Britain, Britain’s largest electronics firm, announced Tuesday a proposed $1.72-billion merger with Plessey PLC, a major British aerospace and electronics company.
General Electric PLC, which is not connected with the U.S. company of the same name, said that it wanted to create an electrical and electronics group that could compete worldwide.
Plessey Chairman John Clark called for a meeting of directors for today to consider the General Electric offer, which was valued at about $2.388 a share.
The announcement caused a surge in prices for both General Electric and Plessey shares on the London Stock Exchange, and the news Tuesday boosted the entire electrical stocks sector for the day.
On the London Stock Exchange, Plessey shares jumped to $2.60 from Monday’s close of $2, while General Electric shares added 11 cents to $2.70.
The two companies combined would have an annual revenue of more than $9 billion.
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