GE Offers Concession to Save Honeywell Bid

General Electric Co. representatives held talks with European Union antitrust officials that reportedly resulted in GE offering a last-ditch concession to save the company’s $41-billion bid for Honeywell International Inc.

GE proposed selling a minority stake of its aviation-financing unit, GE Capital Aviation Services, the Wall Street Journal reported on its Web site, citing people familiar with the situation.

The revised proposal would be contingent upon the divestiture of fewer Honeywell avionics businesses than what GE had previously offered, which had combined sales of about $2.2 billion, the sources said.

GE spokesman Gary Sheffer said the company’s outside advisors have had informal discussions with European Commission staff. He would not comment on details of the talks but said the options under discussion are within the financial parameters of GE’s final proposal made June 14. The EU rejected that offer as falling far short of regulators’ demands.

The EU’s 20 commissioners are scheduled to vote on the merger Tuesday.

On the New York Stock Exchange, Honeywell rose 80 cents to $37, and GE fell 53 cents to $48.26.