How Jack Fell Down

INSIDE THE COLLAPSE OF THE GE-HONEYWELL DEAL--AND WHAT IT PORTENDS FOR FUTURE MERGERS

On the evening of Wednesday, June 13, Jack Welch, CEO of General Electric, retreated to his room at the Conrad Hilton hotel in Brussels and wrestled with an unfamiliar feeling--one of impending defeat. Just eight months before, he had, it seemed, pulled off a stunning coup. Welch had always coveted Honeywell International, whose business making advanced electronics for the aviation industry, he thought, made a perfect fit with GE, one of three leading global manufacturers of airplane engines. In October 2000, during a visit to the New York Stock Exchange, he had learned that United Technologies Corp.--whose Pratt & Whitney division...

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