GE Dumping Baker Hughes in Bid to Boost Stock Price

Looks like “Baker Hughes, a GE Company” will soon become just plain old “Baker Hughes” once again. This morning GE released the results of a year-long internal review. GE has its fingers in a lot of pies and wants to pull its fingers out of some of those pies. The results of the review recommend GE dump Baker Hughes (over the next 2-3 years), and also dump its healthcare division. The company will concentrate on three “complimentary” areas: aviation, power and renewable energy. The hope is that by focusing and shedding peripheral business units, the company’s financial performance, and stock price, will improve. Just last week GE was booted from the Dow Jones Industrial Average after being a component of that average for over 100 years. The company’s stock was replaced on the DJIA by Walgreens. Truly humiliating. You may recall Halliburton originally wanted to buy Baker Hughes but the Obama Justice Department blocked the deal (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”). Then GE came sniffing around and ended up buying BH in July last year, combining BH with GE Oil & Gas (see Baker Hughes and GE Complete Merger, World’s 1st Fullstream Co.). The resulting merged company was billed as a “fullstream” company–ticking all of the boxes in the oil and gas sector: upstream, midstream and downstream. But just four months after the merger there were signs of marriage problems (see 4 Months After Buying Baker Hughes, GE Wants to Sell It). And now it’s official. The two will be splitsville…

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