GE Shares Rally on Citigroup's Push for Unit Spinoffs

GE SHARES RALLY ON CITIGROUP'S PUSH FOR UNIT SPINOFFS
[SOURCE: Bloomberg, AUTHOR: Rachel Layne and Alexis Xydias]
Citicorp is suggesting that General Electric should spin off NBC Universal, GE Money and the company's real-estate division. GE should spin off NBC because the division "has no meaningful synergy with the rest of the portfolio," the Citigroup note said. Nicholas Heymann of Prudential Equity Group said a company such as Google may be interested in buying NBC Universal as part of its effort to add to its mix of media offerings including YouTube. Divesting assets would make GE, the world's second-largest company by market value, easier to understand for investors, wrote Citigroup analysts including Jeffrey Sprague. NBC Universal provided $16.2 billion, or about 10 percent, of GE's $163.4 billion in revenue last year.
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