Shares in Honeywell rose nearly 5 per cent early yesterday, on speculation that General Electric was poised to offer a compromise to the European Commission in a last-ditch attempt to win approval for its $41 billion takeover.

GE and Honeywell refused to comment, but people close to the companies said GE representatives met Commission officials yesterday. Executives from both companies have been examining ways to persuade the Commission not to block the deal.