According to a report from the Wall Street Journal[subscription only], General Electric Company(NYSE:GE) is auctioning its plastics division, which could result in a price tag of $10 billion or more. True, it's a historic business for the firm (started in 1930) – but it's simply not meeting its benchmarks for margins and growth.

Yes, the likely buyers should include a variety of major private equity firms.

However, GE is making something clear: no club deals. That is, private equity firms will not be allowed to team-up to make a bid.

Club deals are a fairly recent phenomenon. Basically, it helps private equity firms diversify risk. It also helps make it easier to pull off large transactions.

However, it could also mean less competition. This, in turn, could lead to lower bids.

Interestingly enough, this has caught the attention of the Justice Department, which enforces the antitrust laws.

So, this looks like a smart move for GE. And, it would not be a surprise to see other companies follow the lead.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.