General Electric has gained 0.3% to $23.18 today after a report that it plans to unload its consumer lending division.
Exxon Mobil The Wall Street Journal has the details:
The decision to divest the business, amid concerns about the company’s exposure to banking, marks an important moment in the evolution of GE and the country’s three-decade long consumer credit boom. GE Capital expanded to the point that its portfolio of loans and other assets now would rank it as the country’s fifth-largest commercial bank.
Preliminary work to separate the business through an initial public offering is under way, according to people familiar with the matter…An IPO could come early next year, the people said.
S&P Capital IQ’s Eric Hugel considers what comes next for the U.S. blue chip:
We view this move as consistent with GE’s plans to reduce the size of GECC. Further, we expect proceeds to be used to expand GE’s role as a global provider of technologies and services critical to economic development. We keep our EPS estimates for ’13 and ’14 at $1.65 and $1.85, while our P/E-based target price stays at $28.
The Dow Industrial Average has dropped 0.3% to 14,795.48, while United Technologies (UTX) has fallen 0.6% to $99.84, Honeywell (HON) has dropped 0.7% to $79.50 and MMM (MMM) has ticked down 0.1% to $113.20.
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