General Electric (GE) said today it is selling the bulk of its GE Capital banking business in its latest attempt to simplify the conglomerate and concentrate on the best-performing segments.
GE kicked off the announcement on Thursday with the sale of its real-estate assets — a hodgepodge of factories, commercial loans and apartment complexes — for $26.5 billion. Wells Fargobank and private equity firm Blackstone bought the bulk of that for $23 billion, the companies said.
GE will take a $16 billion after-tax charge against earnings the first quarter this year as a result, the company said.
The stock jumped 8.9% to $27.81 a share as Wall Street applauded the move as evidence the company is getting serious about its strategic shift away from financials and back to manufacturing.
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