GE seeking bids for plastics business (MarketWatch)

[Roland99]

http://www.marketwatch.com/news/story/ge-seeking-bids-plastics-business/story.aspx?guid=%7B428A1D97%2DDF31%2D4EC8%2D8DE3%2DDC415FBFA946%7D

General Electric Co. is seeking bids on its plastics business, which is valued at up to $10 billion, according to a media report late Monday. As part of the process, GE has told private-equity buyout firms contacted about the possible sale that they face restrictions on their ability to team up with other private-equity bidders, the Wall Street Journal reported on its Web site, citing sources. The exact details of the restrictions aren't known, the report said, but they reflect concern from the Department of Justice about lack of competition among possible private-equity buyers. The Goldman Sachs Group, Inc, acting on behalf of GE in the potential sale, has conveyed the bidding restrictions to private-equity firms, the Journal reported. Goldman has also contacted some potential plastics-industry bidders as well.

Interesting. I always figured that was a rather profitable arm of GE's businesses.

I got my start in IT during my college co-op at a GE Plastics plant in SW IN back in the late 80s.

[Old and In the Way]

1. This is interesting...I wonder why they want to dump this unit?

Their plastic group has their hands in a lot of different industries...I'd think that would be good for their overall business strategy. It may be that GE Plastics, while a big player in the US market, might be seeing erosions in their primary resins (Cycoloy, Cycolac, Lexan, etc) to other compeitors, primarily Bayer and Chi Mei, in the growing offshore markets.

[ret5hd]

2. My guess is lawsuits on chemicals like Teflon...think asbestos.

[burrowowl]

4. Plastics = Oil eom

[Roland99]

6. So the increase of oil is maybe cutting into the profitability?

[BootinUp]

3. I think its just a mature market with

lots of foreign competition as you point out. I've seen lots of changes in the plastics industry over my career, not too surprising in that light.

[Trillo]

5. What?

GE is selling their business and future buyers must agree to competition enhancing restrictions? If so, then doesn't that mean that GE, as the single current owner, doesn't have such restrictions?

Yeah, I guess BushCo would want those "details" unknown.