General Electric (GE) says that it is leaning toward spinning off its entire Consumer and Industrial division as a separate public company. The stock would likely be given directly to existing GE shareholders. Immelt:
As we explored our options for appliances, it became clear that the fastest, most efficient step we could take in completing the transformation of our industrial portfolio would be to focus on a possible spinoff of the entire unit
This should appeal to senior GE fans, who still most closely identify the company with light bulbs.
In May, following a disastrous first quarter, GE suggested that it would spin off its $7.2 billion appliances division. Now, it’s keeping the whole $13.3 billion Consumer and Industrial division together. This should please most analysts, who thought that even after the appliances spinoff, GE’s sprawling portfolio of businesses was simply too much for it to handle. Of GE’s six divisions, only 2 (NBC Universal and Infrastructure) didn’t see their profits shrink in Q1.
Business Insider Emails & Alerts
Site highlights each day to your inbox.