- Created: Friday, 06 June 2008 13:00
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LG Electronics said it hasn't been approached by Sweden's Electrolux about a joint bid for General Electric Co.'s (GE) home appliances unit that is up for sale.
"We haven't been approached by Electrolux or received a proposal from the Swedish company about a possible joint bid for GE's home appliances unit," LG Electronics spokeswoman Judy Pae told Dow Jones Newswires by telephone.
She was responding to a Korea Economic Daily report earlier Monday that said Electrolux has proposed to LG that the two companies jointly bid for the GE unit.
The report, citing an unidentified industry official, also said LG is reviewing several possibilities, including a solo bid, a joint bid with Electrolux, or taking over a part of GE's home appliances unit.
"We're reviewing the possible impact of the sale of GE's appliances unit on our company, but we haven't decided anything yet," Pae said, repeating the company's earlier position.
Last Tuesday, LG Electronics Chief Executive Yong Nam had said at a press conference that the company is taking a close look at GE's appliances unit. He added that the entire appliance industry could be reshaped by the outcome of the GE transaction.
In many ways though this makes sense in a weird way as, with global finances being the way they are, appliance manufacturers being jittery and strapped for cash perhaps a joint bid might be a sensible suggestion after all. In any event, the plot thickens.