STOCKWATCH GE, Honeywell sharply higher as U.S. seen clearing bid soon

NEW YORK (AFX) - Shares of General Electric Co and Honeywell Inc were sharply higher in early afternoon trade, buoyed by growing expectations that GE's proposed acquisition of Honeywell will soon be cleared by the U.S. authorities, dealers said.	     Yesterday, GE assured investors at its annual meeting that the U.S. Department of Justice is close to approving its plans to acquire Honeywell for about 40 bln usd, the Financial Times reported.	    People close to the U.S. regulatory talks said GE has negotiated divestments of part of the combined group's engines business for military helicopters, and a small aviation services operation, the FT said.	    In a research study, Salomon Smith Barney analyst Jeffrey Sprague said he believes the Department of Justice is expected to approve the transaction in the "very" near term, adding Honeywell's first-quarter results were "respectable" given current weak economic conditions.	    "The deal could add 15 cents to 2002 earnings," said Sprague, adding the GE stock appears to have reached a turning point and looks well placed to see an improved performance this year.	    "Fundamental concerns about Honeywell have eased due to the company's respectable earnings performance in the first quarter," he added.	    Sprague reiterated his "buy" rating on the stock, with the U.S. authorities seen approving the acquisition of Honeywell over the next few weeks.	    The EU, meanwhile, is expected to indicate a softening of objections toward the deal in an attempt to be cooperative with the U.S. Department of Justice, he added. 

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