ELUXY AB Electrolux (PK)

   (FROM THE WALL STREET JOURNAL 12/3/15) 
   By Brent Kendall 

WASHINGTON -- A Home Depot Inc. executive testified Wednesday in favor of Electrolux AB's planned acquisition of General Electric Co.'s appliance business during occasionally contentious proceedings in a government antitrust case.

Bob Baird, a Home Depot vice president for merchandising, said the transaction would help a post-acquisition Electrolux "get more innovative" and "compete on a better level" with such other appliance makers as Whirlpool Corp., LG Electronics Inc. and Samsung Electronics Co.

The Electrolux deal makes particular sense given GE's stated interest in exiting the appliance business, Mr. Baird said. Electrolux called Mr. Baird to the witness stand as part of its defense against the government's allegations that the GE deal would be anticompetitive and would lead to higher prices for cooking appliances. In representing a top retailer, Mr. Baird was sought to testify about the impact on consumers by the proposed acquisition.

The Justice Department, which is asking U.S. District Judge Emmet G. Sullivan to block the transaction, fired back on multiple fronts. Department lawyer Ethan Glass said it wasn't always the case that Home Depot sought to keep prices down for consumers, citing several internal communications between Mr. Baird and appliance makers in which the Home Depot executive appeared to encourage manufacturers to raise prices on certain models.

The Justice Department filed suit in July to block the Electrolux-GE deal. The trial began last month and is expected to run into next week, with Judge Sullivan's decision expected early next year.

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(END) Dow Jones Newswires

December 03, 2015 02:47 ET (07:47 GMT)

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