There have been plenty of rumblings that the conglomerate is open to spinning off assets to right the ship.
As General Electric Company’s (NYSE:GE) stock price continues to lag in the midst of a boom time for the market as a whole, there has been plenty of speculation that the conglomerate is examining the possibility of breaking the band up to improve performance. A new report has emerged that suggests a sale of one major unit could happen before too long.
Reuters has the details on a potential deal that GE is exploring.
General Electric Co (GE.N) is exploring a sale of the electrical engineering business which it acquired for $3.2 billion in 2011, as the U.S. industrial conglomerate continues to shed unwanted assets, according to four people familiar with the matter.
John Flannery, who took over as GE’s chief executive last summer, indicated to analysts and investors for the first time earlier this year that he was open to breaking up the company, and said that a spinoff of any of its units, which include power, healthcare and aviation, was possible.
GE’s acquisition of Coverteam was designed to boost its performance in a sector that it was already having substantial success in. Times have changed. GE’s energy business as a whole has taken a hit, as lessening demand for its products has had a serious impact on the company’s bottom line.
In addition to the potential sale of Coverteam, GE is also said to be looking into sales of its industrial gas engine business and its railway locomotive division, among others.
General Electric Company shares rose $0.15 (+1.00%) in premarket trading Monday. Year-to-date, GE has declined -13.68%, versus a 4.50% rise in the benchmark S&P 500 index during the same period.