General Electric Co (GE.N) will split into three public companies as the storied U.S. industrial conglomerate seeks to simplify its business, pare down debt and breathe life into a battered share price, the company said on Tuesday.
The split marks the end of the 129-year-old conglomerate that was once the most valuable U.S. corporation and a global symbol of American business power.
GE shares closed 2.6% higher at $111.29 on Tuesday, after reaching a nearly 3-1/2 year high, compared with a 0.35% drop in the broader S&P 500 (.SPX) index. The industrial conglomerate’s shares have gained about 9% since July 30 when the company reduced the number of its traded shares.
In the past three years, GE Chief Executive Larry Culp has focused on reducing debt by selling assets, and improving cash flows by streamlining operations and cutting overhead costs.Read more