GEC Acquires Reltec for $2.1 Billion

General Electric Company PLC (GEC) has acquired Reltec Corp., a designer of telecommunication network products, for $2.1 billion.

Under the definitive merger agreement, an affiliate of GEC will commence a cash tender offer for all of RELTEC's shares at $29.50 per share. Simultaneously, affiliates of Kohlberg Kravis Roberts & Co. LP, the controlling shareholders, have entered into a stockholder agreement whereby they have agreed to tender their approximately 81.5% stake in Reltec into the offer and to exercise rights to require holders of an additional 5.9% to tender their shares into the offer.

The Reltec acquisition should be completed during April 1999.