Electrolux AB plunged in Swedish trading after the US Justice Department rejected a proposal to resolve a government lawsuit seeking to block the $3.3 billion takeover of General Electric household-appliance business.
The Stockholm-based company’s offer to sell assets falls “well short” of replacing the competition that would be lost as a result of the deal, Ethan Glass, a lawyer for the department’s antitrust division, said at a hearing Friday in a Washington federal court.
The US claims the tie-up threatens to raise prices for consumers. The government’s lawsuit against Electrolux and Fairfield, Connecticut-based GE to block the deal is set to go to trial on Nov. 9 before US District Judge Emmet Sullivan, who encouraged the two sides to continue talking.
Electrolux spokesman Paul Palmstedt said the company isn’t currently in discussions with the department on a settlement.
“We are preparing to present our case in court,” Palmstedt said by phone Monday. “We don’t share the Department of Justice’s assessment, and are convinced about the merits of our case.”
Full content: Appliance Retailer
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