(Adds shares, quotes, analyst comment, background)
ISTANBUL May 29 Turkish white goods
manufacturer Arcelik (ARCLK.IS) said on Thursday it was closely
monitoring the planned sale of General Electric Co's (GE.N)
But Arcelik said in a statement to the Istanbul Stock
Exchange it had not made a decision on bidding for the
century-old business, owned by the second-largest U.S. company
by market capitalisation.
Shares in Arcelik were down 1 percent at 5.05 lira in early
trade in Istanbul after the statement. Istanbul's main share
index .XU100 was up 0.53 percent.
"Growing through the purchase of foreign companies has an
important place in the growth strategy of Arcelik," the
company's statement said.
"In this context, Arcelik is closely monitoring developments
regarding the possible sale of General Electric's durable goods
business," he said.
GE's chief executive on Wednesday named five non-U.S.
appliance manufacturers, including Arcelik, as potential bidders
for the unit.
The other possible bidders were China's Haier, South Korea's
LG Electronics, Sweden's Electrolux and Mexico's Controladora
Mabe, GE's Jeff Immelt said.
One research report expressed scepticism about the prospects
of Arcelik, which has been expanding abroad through partnerships
and acquisitions, buying the business.
Ak Invest said in a daily note: "We think the purchase of
the whole of GE appliances by Arcelik is very big. As of the end
of the first quarter, the company had a net debt position of
Last year Arcelik bought a Chinese washing machine maker as
part of its strategy to expand in that region.
GE's appliances unit last year sold $7.2 billion worth of
refrigerators, washing machines and other household appliances.
Analysts and investors have estimated the business, which is
No. 2 in the U.S. behind Whirlpool Corp (WHR.N), could sell for
between $4 billion and $8 billion.
(Reporting by Daren Butler, editing by Will Waterman)