The Key Benefit From General Electric's Breakup
By now, most General Electric (NYSE: GE) investors will be aware that management plans to separate the company into three different entities. In a sense, it's following a path already laid by two of its fiercest rivals, Siemens and the former United Technologies. The separation will lead to one-time costs of $2 billion for GE, but what about the benefits? Let's take a look at what investors can expect from the breakup.
Aside from the argument that the new companies will command higher valuations as separate companies, a key point is that the companies will be better run as individual companies.
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Source Fool.com
