EC investigates AlliedSignal deal

THE EUROPEAN COMMISSION yesterday began a full investigation into the proposed merger between the US firms AlliedSignal and Honeywell, citing concerns about its impact on the avionics sector in Europe. The companies shrugged off the move, saying they were confident of final regulatory approval.

The European Union's competition watchdog has a further four months to give its final verdict on the all-American deal. AlliedSignal shares fell in New York by 2 7/16 to 6113/16, while Honeywell closed 51/8 down at 1141/4. The companies' main competitors in Europe are Sextant Avionique in France and Smiths Industries in Britain, and Rockwell International in the US.