real-time news and commentary for investors
Friday, Aug 30
GE plans to exit retail finance
- GE (GE) reportedly intends to spin off the U.S. consumer-lending operations of GE Capital, which earned $2.2B in 2012, via an IPO that could take place early next year.
- GE is also considering alternatives such as smaller spin-offs or the sale of the unit, although the latter could prove to be too complicated.
- The unit provides credit cards and financing to 55M people at major retailers, including Wal-Mart and Gap's Banana Republic.
- A spin-off would be part of GE's strategy of paring back its finance arm and bulking up its industrial businesses.