Needless to say, I am shocked by the announcement that GE intends to split into three companies.
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By "getting rid of bad" do you mean like getting rid of appliances, for example? A staple in GE product line for decades, it was no longer profitable. Interesting, because an outside entity was able to buy it ...and make appliances completely successful....yet GE was not able. So "getting rid of bad" or maybe "GE is just bad". Pick for yourselves.
The real reason is that this is the quickest way to get GE to the point that it can grow again. Get rid of the bad and leave enough good so that you can effectively fight again another day. Still a long road, but the new GE (aviation-centric) will grow and thrive.
It is a way to absolve debt, and cut union, and pensions
The reason is obvious.
https://www.marketwatch.com/amp/story/ges-ceo-could-make-a-fortune-when-the-company-splits-into-3-11636638951
It is the normal playbook of Trian. Strong arm their way onto the board of directors and then smash the company to pieces and make bank on the process. Only surprised it is only three pieces.
Look at the compensation package and metrics that the board gave Larry. It's all about making the stock price go up in the short term. Nothing tied to creating a long term sustainable company.
The bag holders like Trian want a chance to dump the stock and recoup some of their billions in losses at a better price. They will literally do anything that has a chance to make that happen.
Nelson Peltz's losses are the reason
Someone, somewhere, isn’t making enough profit, or either someone, somewhere, is making more profit than another someone