The company has already moved to wind down its once vast financial arm and spin out or sell various businesses under pressure from investors.
The company has already moved to wind down its once vast financial arm and spin out or sell various businesses under pressure from investors. By Michael J. de la Merced General Electric announced on Tuesday that it planned to break itself into three publicly traded businesses, the latest effort by the 129-year-old industrial conglomerate to simplify its business and lift its stagnant stock price. The company said it would spin off its health care division in early 2023, and its energy businesses a year later. That would leave its aviation unit as its remaining business, which would continue to be led by its chairman and chief executive, H. Lawrence Culp. Tuesday’s announcement is perhaps the most drastic effort yet by G.E. to reinvent itself, as it has struggled to bolster its fortune following the 2008 financial crisis. The company has moved to wind down its once vast financial arm and spin out or sell various businesses under pressure from investors. Shares in G.E. were up more than 10 percent in premarket trading following the announcement. This is a developing story. Check back for updates. By Alexandra Stevenson Turmoil in China’s real estate sector could threaten the United States, the Federal Reserve said in a report on Monday. In its twice-yearly update on the American financial system, the U.S. central bank said it was concerned both with how high the levels debt had grown in China’s corporate sector and with how Beijing was tackling the debt. The financial troubles of China Evergrande Group, the world’s most indebted developer with a $300 billion debt pile, has set off panic in global financial markets and at home. What initially emerged as concern over one heavily indebted company has spread to a number of other real estate companies. Those developers are showing their own signs of stress as they struggle under mountains of debt and a property market slowed by tightening government controls over borrowing. The regulatory focus, the Fed said, “has the potential to stress some highly indebted corporations, especially in the real estate sector, as exemplified by the recent concerns over China Evergrande Group.” These stresses, in turn, could spill over into the broader economy.
