Suitors line up for GE appliances

Interest in the business has come from all around the world

General Electric (GE) has named four companies it says are interested in buying its household appliances unit.

It cited LG Electronics, China's Haier, Mabe of Mexico and Arcelik of Turkey as possible bidders for the unit, whose products include fridges and toasters.

The US industrial giant said last month that it was likely to stop making household appliances after more than a century in the business.

It blamed the slowdown in US consumer spending and the housing slump.

'Leading candidates'

GE is carrying out a review of the business which is likely to result in it being sold or spun off.

GE-branded fridges, ovens and air conditioners have made the firm a household name, but the unit generated just 4% of total revenues in 2007.

Analysts have said the business is worth about $7bn (£3.54bn).

It will be very intriguing to see what happens Jeff Immelt, GE chief executive

GE boss Jeff Immelt said a number of "leading candidates" had expressed interest in the business and that the process was likely to take between six and nine months.

"It will be very intriguing to see what happens," he said.

On a visit to South Korea, Mr Immelt praised LG Electronics, seen by some as the frontrunner in the bid battle.

"They are a great company. They already have a presence in the US. Strategically, there are many things to be admired about a combination of LG and GE Appliances," Mr Immelt said.

But analysts seemed cautious about LG's interest in the GE business and its shares fell more than 3% in trading on Wednesday.

"I doubt LG would be interested in pursuing this deal since there is little the company can gain," said Steve Lee, from Shinhan Securities.

The US economic slowdown has hit GE hard.

It makes more money from jet engines than dishwashers and the appliances unit made revenues of just $7bn last year, a fraction of its total 2007 sales of $172.7bn.

GE's empire spans commercial and consumer financial services, jet engines, water treatment plants and medical equipment. It also owns media company NBC Universal.