Here's What General Electric's Big Split Means For Investors
General Electric (NYSE: GE) surprised the market earlier this week by announcing its intent to divide itself into three companies. The plan makes sense and should result in a significant release of value for investors, but there's still some risk attached. Here's the lowdown.
First, following the breakup, each of the newly public offspring companies could trade at higher valuation multiples than they would be credited with as parts of the current GE due to what's now called the "conglomerate discount."
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Source Fool.com
