Trian founder: The company is proud of where General Electric is heading

CNBC's "Squawk on the Street" team discusses markets, General Electric, its CEO Larry Culp and more with Ed Garden, founder and chief investment officer at Trian Partners, who's also on GE's board. To see more of the interview with Garden sign up for a free trial to CNBC Pro: https://cnb.cx/3vhLDuU

Shares of General Electric continued to drop Thursday, a day after the company announced plans to sell its jet-leasing business to rival AerCap and fold a substantially slimmed down GE Capital into its balance sheet.

GE stock was down more than 8% in midday trading Thursday after tumbling about 5% on Wednesday. Before the announcement, shares had rallied more than 120% in the past six months, hitting a fresh 52-week high as recently as this week.

The Boston-based conglomerate on Wednesday announced the deal to sell GE Capital Aviation Services, or Gecas, the largest remaining asset of the company’s once-colossal finance arm GE Capital, to AerCap. GE said it will take a 46% stake in the combined company and the deal will generate about $24 billion in cash. Once the deal closes in nine to 12 months, GE plans to shift GE Capital’s remaining debt and assets onto the company’s industrial balance sheet.

Even as GE stock falls, AerCap investors appear to like the deal. Shares of the Ireland-based company were up more than 6% in midday trading Thursday.

In an interview with CNBC on Wednesday, GE CEO Larry Culp made the case that the deal is a critical step in his turnaround plan for the company as he seeks to simplify operations and pay down debt.

“GE shareholders should be delighted with this transaction,” Culp told CNBC’s David Faber. “With a $30 billion headline, what we’re able to do here is bring cash in ... which will allow us to put that toward additional debt reduction.”

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast

Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-credit-cards/

#CNBC
#CNBCTV

Видео Trian founder: The company is proud of where General Electric is heading канала CNBC Television