Re: GE aerospace

From:         David.B.Horvath@rave.larc.nasa.gov, CDP <MBADBH@rohvm1.rohmhaas.com>
Organization: Hidden - I don't speak for them...
Date:         04 Dec 92 22:30:29 PST
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I was layed off by GE Aerospace, Astro-space division (satelites) last year
and have kept up with the goings-on in the company.  I've also grabbed
information via the Dow Jones News Service:

Martin Marietta Corporation is acquiring General Electric Company's
Aerospace operations.  These will be *merged* in with MM's current operations.
MM plans on closing the transaction by March 1, 1993.  Before the arrangement
was announced, GE signed a pledge not to hire any (soon to be) former GE
employees for a period of 2 years (the GE term is "the employees are
Frozen in their jobs").

MM will probably close the GE Aerospace HQ in Valley Forge, PA (suburban
Philadelphia) as the MM HQ is in Bethesda, MD.  GE is getting $1B in
convertable preferred stock, 2 seats on an expanded MM board, and about
$2B in cash.

MM is financing somewhere around $500M of the cash and issuing the new
stock to GE.

Secretary of Defense Dick Cheney was briefed and was supportive.  The FTC
has not passed on the transaction yet.

GE Aerospace consists of the GE units and units acquired from RCA a few
years ago.  Jack Welch bought RCA for $600M (cash - no debt); what will
he buy with $2B?  GE has (essentially) no debt and the stock is trading
rather high for a massive stock-repurchase to take place.

The sale includes GE Aerospace, GE Government Services, Knoll Atomic Power
Labs (Schy., NY) and GE MAO.

   - David Horvath

(BTW: GE also sold GE Consulting Services to Keane, Inc recently.  #$%^,
      that's 2 parts of GE that I used to work for that got sold).
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Michael T. Palmer, M/S 152, NASA Langley Research Center, Hampton, VA 23681
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