In a move that many investors have wanted, General Electric (NYSE: GE) just came out and said that it is mulling over the potential spin-off of its consumer and industrial division.
According to MarketWatch, "The conglomerate said shareholders will receive stakes in the new entity covering ts appliances, lighting and industrial units."
This is great news for investors and may be a precursor for other large conglomerates that have seen their stock prices stagnate for more than six years, to start spinning off divisions in order to unlock value for shareholders.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 7/10/08.
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