I agree that the deal itself will net some theoretical added value and cash to GE parent.
However, the added value will quickly evaporate after the transaction as Healthcare’s cash flow gets diverted to debt and pension payments and GE Corp level loses out on the Healthcare profitability to the parent. My opinion is that GE’s stock drops after the Healthcare IPO to something around $4 as the market cap continues to resize as productive assets are disposed.
This is just a short term play for cash as GE can not tap the Bond Market for at least not the next two year. This is one of the few remaining plays left.
Mid Term I see this as dilutive to both Healthcare and GE stay behind shareholders and the IPO price is likely to be the top for both until the debt in both equities comes down to a more appropriate level.
5+ Years this likely will be better for Healthcare.
You are on point @WQb6aG0-1aya . I absolutely agree wit everything said.