IN BRIEF : Plessey PLC Joint Bid Put on Hold
The government said today it will study further the $3-billion joint bid by General Electric Co. PLC and Siemens AG for Plessey PLC to determine its possible impact on competition in Britain’s electronics industry.
The decision temporarily blocks the bid from proceeding but allows the two bidders to hold under 15% of Plessey’s stock. The bidders quickly increased their stake in Plessey to 14.9%, from about 3%, following the government’s announcement.
Meanwhile, in Brussels the European Commission said today that it will investigate the bid, which might break Common Market competition rules.
The developments came amid expectations that a new international consortium, expected to include Plessey, was to make a bid for GEC.