Seeking Alpha

GE says retail finance IPO set for 2014

  • General Electric (GE) will file a registration statement for an IPO of its North American Retail Finance arm in Q1 2014, the company says.
  • GE will issue as much as 20% of the equity in the business and plans to "complete the IPO" later in the year.
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Comments (18)
  • tomlos
    , contributor
    Comments (1228) | Send Message
     
    Any idea if current GE shareholders will receive a piece of the new capital firm as a result?
    15 Nov 2013, 09:36 AM Reply Like
  • chopchop0
    , contributor
    Comments (4110) | Send Message
     
    God I hope not. Would've probably kept the shares in better shape when the financial crisis hit

     

    I wish they'd just stick to the bread and butter..... jet engines, washing machines, and healthcare stuff.
    15 Nov 2013, 09:54 AM Reply Like
  • LibertyBelle
    , contributor
    Comments (53) | Send Message
     
    The release I just read - unfortunately - indicates it won't be a spin-off; instead the existing shareholders I believe will be offered an "exchange" of shares. Maybe this is why after a bounce and increased trading earlier this morning the bump is gone. Now we have to hope there will be a 2 cents dividend increase in Dec.
    15 Nov 2013, 09:54 AM Reply Like
  • busterbrown
    , contributor
    Comments (157) | Send Message
     
    As much as 20 percent of the unit will be sold in a 2014 initial public offering, GE Capital CEO Keith Sherin said today at an investor meeting in Norwalk, Connecticut. In a second step, the remaining shares will be distributed to GE stockholders in a tax-free transaction.
    15 Nov 2013, 09:17 PM Reply Like
  • busterbrown
    , contributor
    Comments (157) | Send Message
     
    Don't forget GE Oil & Gas, this is quickly becoming their pride and joy.
    15 Nov 2013, 09:46 PM Reply Like
  • iamgarce
    , contributor
    Comments (24) | Send Message
     
    appliances need to go also ... I started a position in GE back in '07 ,
    with the idea that they would shed non core competancies , and low
    margin stuff ... fortunately i got edgy and sold when they couldn't
    get their bid (7 bil) for appliance division , then everything hit the fan ..
    I had no idea how toxic the capital services was . GE should be
    a juggernaut with just jet engines , train engines , medical , electric
    generation (all sources) .. i believe that they are on the way to
    "bread and butter" , been accumulating for 6 months and will continue
    to add up to 30/share .. then let it ride for a long tine .. garce
    7 Mar 2014, 09:41 AM Reply Like
  • iamgarce
    , contributor
    Comments (24) | Send Message
     
    that could be .. .BMY spin off Mead Johnson in some deal where the
    BMY shareholders could exchange and no tax consequence ...
    from what i have read .. 20% goes in '14 and the other 80% gets ]
    distributed to shareholders >.. BUT which shareholders .. those who
    hold the GE CAP stock or reg. GE holders ? still trying to find out
    8 Mar 2014, 02:37 PM Reply Like
  • iamgarce
    , contributor
    Comments (24) | Send Message
     
    yup , but what's the ratio ? how many shares of GE CAP can a GE
    holder expect to get .. i understand that it's all price dependant of
    some indicated date , but it would be nice to have a feel for how
    much we get ...
    8 Mar 2014, 02:38 PM Reply Like
  • nmbadlands@aol.com
    , contributor
    Comments (5) | Send Message
     
    Excellent question, tomios. Shareholders have not seen a single share as a result of GE divestitures to date.
    15 Nov 2013, 11:08 AM Reply Like
  • iamgarce
    , contributor
    Comments (24) | Send Message
     
    some companies operate that way .. IBM is one .. they NEVER distributed
    anything to shareholders , just kept the proceeds for whatever they
    wanted to do .. i don't really consider that to be so great ... garce
    8 Mar 2014, 02:40 PM Reply Like
  • monmon
    , contributor
    Comments (13) | Send Message
     
    user 10845501 is right , not a share!!!!!!!!!
    15 Nov 2013, 11:55 AM Reply Like
  • comosicama
    , contributor
    Comments (49) | Send Message
     
    This is such an ambiguous news item. It seems to me management intends to keep investors wondering about the fate of this retail, less than stellar, portfolio.
    15 Nov 2013, 12:32 PM Reply Like
  • dpluchin
    , contributor
    Comments (63) | Send Message
     
    As a shareholder, I do not believe with the current deceptive CEO in charge that GE is a shareholder friendly company. I still have the knife in my back when he cut the dividend that he promised not to cut. He pulled an Obamacare deception.
    15 Nov 2013, 12:38 PM Reply Like
  • Dr Joseph Haluska
    , contributor
    Comments (514) | Send Message
     
    GE did let the world down hard, and wasn't exactly an innocent bystander to the financial crisis/great recession. One would think honor would dictate a company of the caliber of an XOM or MCD would demonstrate similar committment to its shareholders.....
    15 Nov 2013, 08:27 PM Reply Like
  • LibertyBelle
    , contributor
    Comments (53) | Send Message
     
    Following up on my previous entry and those from others, I searched further for clarification and more searches showed another statement (this one from Motley Fool) exactly in line with what I had seen before. "The plan calls for a two-stage transaction, with an initial public offering of 20% of the equity in 2014, followed by a distribution of shares to electing GE shareholders in 2015 (in Exchange for GE shares)." Therefore, this GE transaction is not what I call a "spin-off" in which new shares offered are in addition to those one holds. In this instance, relinquishing existing GE shares to acquire new shares = take your pick and take your chances. Also, not a decision that I call investor friendly in accord with other comments.
    Real "spin offs" I received from other companies have been a big financial bonus like YUM from PEP, MEDCO (later merged with ESRX) from MRK, ZMH from BMY, and PSX from COP.
    16 Nov 2013, 09:26 AM Reply Like
  • jjnagoings
    , contributor
    Comments (171) | Send Message
     
    If I understand this correctly it is set up very similar to what Pfizer did with Zoetis earlier this year. I was hoping for a true spin off not and either or.
    16 Nov 2013, 09:40 AM Reply Like
  • john fowler
    , contributor
    Comment (1) | Send Message
     
    I agree with dpluchin,management is very ,very poor. senior stockbroker.
    16 Nov 2013, 09:49 AM Reply Like
  • scott18797
    , contributor
    Comments (10) | Send Message
     
    Stocks don't make sense to me.. seems like a trading game for elites who get to make their own rules as it suits them.. I would assume that at this moment pre-IPO/spin-off, a GE shareholder owes part of the whole of GE.. when they split off a piece of that whole, it has a value that is a percentage of the whole. I don't know the number, but say it was 1/5th for purpose of discussion.. If I own 5 GE shares.. I should end up with 4 GE and 1 IPO share... If that's how it worked, stocks would b less confusing to me. In simple language, how is this actually going down.. In Layman terms if anyone can bring themselves down to my level..
    1 Dec 2013, 07:23 AM Reply Like
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