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GE improves its imaging
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September 21, 1998: 4:02 p.m. ET
Medical Systems unit offers $800M stock for Marquette Medical Systems
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NEW YORK (CNNfn) - GE Medical Systems said Monday it plans to acquire Marquette Medical Systems Inc. for $800 million in stock.
GE Medical is offering Marquette shareholders stock valued at $45 a share, a $17 dollar premium over Friday's close of 27-3/8.
GE Medical, a subsidiary of General Electric Co., makes and distributes imaging systems while Marquette is a leading provider of electrical monitoring devices.
Both companies say the complementary nature of their products strengthens each company's product line in a marketplace where hospitals increasingly are affected by consolidation and constricted budgets.
Jeffrey Immelt, GE Medical's president and CEO, said, "This proposed merger will significantly expand GE Medical Systems' portfolio into new and complementary areas that will enable us to better serve customers and their patients."
Both companies say the merger will result in relatively little overlap and subsequent layoffs. The deal has been approved by both companies' boards but is pending government regulatory and Marquette shareholder approval, expected in November.
In afternoon trading, Marquette (MARQ) shares surged more than 50 percent to 42-7/16. GE (GE) was up 1/4 at 78-1/8. 
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