Merloni Raises GDA Stake
Jan 15, 2003
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General Electric exercised today the first GDA put option provided for in the "Put and Call" agreement with Merloni Elettrodomestici. Under that agreement, which is expected to run until January 2009, Merloni Elettrodomestici can buy GE's 50-percent stake in the stock of the UK company GDA, a British white goods manufacturer (Hotpoint brand) which was already 50-percent owned by Merloni.As of today, Merloni Elettrodomestici holds 60 percent of GDA stock. The Put Price (including the dividend paid by GDA) paid to buy 20% of GE's interest in GDA (equalling 10 percent of GDA's capital stock) was U.S. $71,400,000.

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