According to people with knowledge of the matter, General Electric Co. is once again starting to pursue the sale of its home appliance unit that pushed the company into household business and is responsible for producing many of everyday lifes modern conveniences such as air conditioners, refrigerators and washing machines.
The people familiar with the situation reported that the U.S.-based company is negotiating with potential buyers about selling its appliances division. The deal is considered able to bring between 1.5 and 2.5 billion dollars to General Electric Co. The executives of the company are said to have joined their efforts to find a proper buyer of the unit.
One of the people close to the situation reported that the companys board is expected to meet and discuss a potential sale of General Electrics appliances business next week.
The appliance business, which the company intended to sell a few years ago, is still profitable. However, General Electric believes that the units low margins and significant labour expenses do not correspond with the performance of the rest of the companys industrial businesses that have been posting increasing revenue for years.
According to one person with knowledge of the process, who asked not to be named because the issues are not public yet, General Electric Co. has been waiting to settle the acquisition of the energy assets of Alstom SA before seeking other options, including selling its own appliances division. With the Alstoms energy deal now finalized, the company is ready to focus on its priority and to start the negotiations with several bidders for its appliances unit.
As reported by the Wall Street Journal, the person said: “They are out there talking to people trying to get something done.”
A spokesman of the U.S.-based General Electric Co. refused to make any comments on the matter.
General Electric Co. was 1.54% up to close at 27.02 dollars per share yesterday, marking a one-year change of +15.32%. According to the information published on CNN Money, the 9 analysts offering 12-month price forecasts for General Electric Co have a median target of 29.00, with a high estimate of 32.00 and a low estimate of 27.00. The median estimate represents a +7.33% increase from the last price of 27.02.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
