Videocon weighs probable bid for GE's appliance business

24 May 2008

Diversified group Videocon Ltd is studying an invitation from General Electric Co (GE) to bid for its appliances division, which is being put up for sale.
 
"We have received a memorandum from GE and are studying the proposal," Videocon Industries chairman and managing director Venugopal Dhoot said on the sidelines of a conference.

Dhoot declined to say when and how Videocon would respond to the proposal.

"Globally, we are very well known for acquiring the companies, so wherever there is any company for sale they generally send us the memorandum," he added.

GE last week confirmed that it may sell or spin off its appliances unit, saying the business was too focused on the US.

The Louisville-based appliances business of GE, which makes refrigerators, air-conditioners and ovens, last year generated $7.2 billion (about Rs2,990 crore) in revenues.

Analysts said GE's appliances business could be appealing to an Asian manufacturer looking for a well-known American brand.