Introduction
Suffering from more than 15 years of its stock underperforming the broader indices, 125 year old General Electric (GE) announced a dramatic downsizing of the corporation in December 2017. The firm’s restructuring plan involved streamlining its operations to three core businesses: power generation, aviation, and healthcare. GE will shed more than $20 billion in assets including its transportation, lighting, and oil field operations, as well as its 65% stake in oil field services provider Baker Hughes. The new restructuring plan comes on the heels of the firm’s sale of its media, plastics, appliances, and most of its financial services businesses in recent years. Despite its restructuring efforts, GE’s market value continued to ...
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