Chapter 23, "Go Home, Mr. Welch" Summary and Analysis

Although Honeywell's business complements GE's in various areas, none of their products directly overlap. Honeywell's high-tech avionics fits well with GE's aircraft engine industry, putting GE into a market where there is no competition with Rolls or Pratt. A deal with Honeywell is similar to the RCA deal; it expands existing businesses. It would double GE's aircraft business and introduce high-tech avionics as the brains of the aircraft. Jack's plan is to push services aggressively and add Six Sigma and e-Business initiatives to Honeywell's operations. The downside for Jack is that he would have to postpone his retirement if the deal went through.

The deal is clean. Jack offers 1.055 shares of GE stock for every single share of Honeywell stock. Everyone concerned on both sides agrees. The European Commission is the...