Is the selloff of GE’s stake in Baker Hughes the right way to go?

I gotta admit that I imagined that this reorganisation of GE would start of in a different way and that the” infected tissue” would have been cut of first and then that the leadership would decide how to organize the remaining parts. Don’t get me wrong, I was against the purchase of the stake in BH from the start, but now that it’s under the GE umbrella it doesn't make sense to me to sell a part that isn’t causing any trouble and that has the potential to produce some serious money in the future, which God knows we need in these times.

https://seekingalpha.com/article/4222271-general-electric-will-selling-4-billion-baker-hughes-stake-backfire

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Yes people do buy broken cars and fix them assuming they still have value. I don't see many sales for cars that have been rolled multiple times though.

“then claim "too big to fail" and milk the bankruptcy protection for all it is worth. ”

All the while collecting millions in bonuses (like Hostess) claiming that “they deserve them. If someone else was in there, the losses would be even greater.”

It's easy to sell a business that's losing money.

There are lots of people on Craigslist that buy broken cars, fix them then sell them. Lots.

My guess is C-Suite is going to play Words with Friends until they have to declare bankruptcy, then claim "too big to fail" and milk the bankruptcy protection for all it is worth. Then they would be able to shrug their shoulders and tell Baden / Belfort / Greenville / Schenectady / whichever plant(s) they decide to close that it wasn't their fault, the judge wouldn't approve keeping the plant open.

my guess is they will spin off the good parts and then declare bankruptcy with the failing part that is left.

Think of it like posting a broken TV on Craigslist...no one wants to buy it. If you post your other tv that works on Craigslist, someone will by it. The real question is how bad do you need the money. This is where you see price drops on Craigslist. Simple as that.

You can’t sell a business that’s losing money. Pretty simple, that.

Thread regarding General Electric Co. layoffs

Is the selloff of GE’s stake in Baker Hughes the right way to go?

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