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Posted at 1:49 p.m., Thursday, January 11, 2007

Carlyle Group may purchase GE's plastics unit

By Brett Cole
Bloomberg News

Carlyle Group, the owner of Hawaiian Telcom, may pursue the purchase of General Electric Co.'s plastics unit, David Rubenstein, co- founder of the Washington-based private-equity firm, said today.

The company is seeking offers of as much as $10 billion for the plastic units, people with direct knowledge of the auction said on Jan. 9. Buyout firms may be among the bidders, the people said.

GE Plastics is "a great company and we certainly would be interested in it if we could have a chance to buy it," Rubenstein, 57, said in an interview with CNBC television.

Profit at the GE Plastics unit fell 23 percent in the third quarter as raw-material costs rose. Jeffrey Immelt, chief executive officer of Fairfield, Connecticut-based GE, said last month that the plastics division is "in a difficult spot" and that he may not wait for its fortunes to improve.

GE spokesman Russell Wilkerson declined to comment.

Rubenstein, William Conway and Daniel D'Aniello formed Carlyle in 1987. The firm has since raised $47 billion for buyout, venture capital, real estate and leveraged finance funds and invested in 576 transactions.

Rubenstein said consumer-products and financial-services firms, as well as units of large companies, would be attractive buyout opportunities.

"I think conglomerates will continue to be attractive because of the opportunity to improve the way those companies operate," he said.