General Electric (NYSE:GE) can be divided into seven separate businesses in its industrial segment: power and water, oil and gas, energy management, aviation, health care, transportation and lighting. The company is in the process of downsizing its finance division, and the latest news is it sold a considerable chunk of $32 billion in book value to Wells Fargo (NYSE:WFC). The company wants to concentrate on the industrial segment and sell off additional parts of the remaining finance portfolio until the end of 2016.
Notably Nelson Peltz, through his Trian Fund, has taken a $2.5 billion position in General Electric. Peltz is apparently enamored with the company’s industrial businesses with lots of recurring predictable revenue streams at solid margins. Peltz is likely to pressure management, if needed, to operate even more efficiently throughout the organization and cut any unnecessary fat. Continue Reading »