Categories Analysis, Consumer, Industrials, Technology

GE’s stock gets a lift on reports of Apollo’s interest in GECAS

General Electric’s (GE) stock got a good boost today after Bloomberg reported that private equity group Apollo Global Management is looking to buy the company’s jet leasing operations, GE Capital Aviation Services (GECAS), either in part or full. The proposed bid is estimated at $40 billion.

Apollo is reportedly trying to arrange financing for the major part of the amount. GE’s shares have gained meaningfully since the news came out on Friday.

GECAS is a strong business and has reported solid results consistently which makes it a valuable asset. This sale will generate much-needed cash for the troubled conglomerate and will help streamline operations, in line with the company’s plans.

GE has been struggling for quite a while and the company announced in 2018 that it was planning to divest several of its units in order to focus primarily on its power, aviation and renewable energy businesses. The difficulties faced by the company eventually led to the exit of CEO John Flannery who was replaced by Larry Culp in October.

General Electric misses on Q3 estimates, cuts dividend again

It was also reported that the power division was experiencing weaknesses that would cause the company to miss its guidance for earnings and free cash flow for 2018. GECAS is a part of the GE Capital division, and the sale of the aircraft-leasing operations is expected to help reduce debt and improve GE’s overall credit rating.

Over the past one month, GE’s shares have gained 17%. The stock was up 4.9% as of 11:15 am ET.

 

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top