* "We have not made a decision," GE spokeswoman says
* Analyst had reported Cree picked to supply GE
* Cree shares reverse early gains, down 1.4 pct
(Adds Cree comment, updates share movement)
BOSTON, May 24 General Electric Co (GE.N) and
Cree Inc (CREE.O) denied on Tuesday that the largest U.S.
conglomerate has selected the lighting manufacturer to supply
GE light-emitting diodes, disputing an analyst's assertion.
Cree shares, which had risen as much as 5 percent in early
trading after a Canaccord Genuity analyst note reported that
the company had won a GE contract, reversed course and turned
negative after the denial.
"There is no basis for this rumor. We have not made a
decision," said Kim Freeman, a spokeswoman for GE's appliance
and lighting unit.
Cree spokeswoman Erin Grohs also denied that any deal had
Officials at Canaccord did not respond to requests for
Cree shares, which traded as high as $43.61 on that report,
eased to $40.98 by early afternoon trading, down about 1.4
percent on Nasdaq.
The Durham, North Carolina-based company had been a darling
of Wall Street in recent years but over the past few quarters
has struggled with stiff competition that has driven down
pricing and kept inventories high.
Over the past year, its shares have fallen almost 38
percent, at a time when the Standard & Poor's 500 index .SPX
has risen 21 percent.
Light-emitting diodes are used in products from televisions
to lamps for homes and offices. They use less energy than
traditional incandescent bulbs and compact florescent
(Reporting by Scott Malone; Editing by Gerald E. McCormick and