It seems the calls and progress in changing the shape of General Electric Co. are just never-ending. The Wall Street Journal is reporting that General Electric Co. (NYSE: GE) is hiring Goldman Sachs to explore the sale or auction for its appliances business operations. After seeing this and looking over our own ideas about the future of GE, this might make some sense and it also says something about what’s ahead.
This would take out the slower growth unit with about $7 Billion in annual sales. The appliances unit obviously isn’t a bright spot since the housing market is on skid row. Obviously, GE isn’t holding out for a return to housing and appliances recovery in the next 18 months.
This will allow GE to work more on its Ecomagination unit and other higher growth units around technology, medical tech, infrastructure, and oil.
What is becoming more and more evident is that the GE conglomerate of tomorrow is looking less and less like the conglomerate GE of old.
The good news is that the push button tag on my gas stove that keeps wanting to come off may be a lot cheaper than that $189 the GE rep quoted me.
You can join our open email distribution list to hear about other secondary offerings, IPO’s, secondary offerings, special financings, mergers, spin-offs, and other special situations.
Jon C. Ogg
May 14, 2008