GE has been struggling with heavy debt as well as mounting losses in its power division and has put up several of its divisions for sale over the past couple of months in order to raise cash and to simplify its business structure. The company plans to focus on its aviation, renewable energy and power generation businesses.
General Electric is literally going down the drain, sinks up to 10% today
In June, GE disclosed plans to divest its 62.5% stake in Baker Hughes over the next three years. As per an agreement formed during the combination of the businesses of both companies, GE was not allowed to sell its stake in Baker Hughes until next July. This transaction is a major move by new CEO Larry Culp who took charge on October 1.
GE’s stock is down over 50% year-to-date. Looking at the past one month, the stock has dropped 30%. After gaining as much as 10% during afternoon hours on Tuesday, GE’s shares slowed down. As of 2:25 pm ET, GE shares were up 7.7% while Baker Hughes was up 0.3%.