GE Considers Break-up After Being Hit With $11B In Charges in Q4

General Electric could be looking more at breaking itself up after the company announced this week that it is facing more than $11 billion in charges from its long-term care insurance portfolio and because of new tax laws in the United States.

The company’s newly appointed CEO John Flannery has previously thought about selling pieces of the company and said on Tuesday that the company is “looking aggressively” at ways to maximize the value of the company’s power, aviation, and healthcare units.

He said on a conference call, “I would categorize it as an examination of options and it’s (the) kind of thing that could result in many, many different permutations, including separately traded assets really in any one of our units, if that’s what made sense.”

Flannery is also cutting thousands of jobs and cutting billions in costs in a turnaround effort.

According to Deane Dray, analyst at RBC Capital Markets, “He got really explicit. He named all the units and said we’ll look at structures that allow for a public company exit. If you’re looking for the break-up scenario, it’s still simmering on a front burner.”

Jeff Sprague, an analyst at Vertical Research Partners said, “We think these comments point more towards the eventual split-off of (GE’s Baker Hughes unit) and actions such as a potential IPO of part of GECAS.”

The company said it would be providing an update on its review in the spring.

Disclaimer: We have no position in General Electric Company (NYSE: GE) and have not been compensated for this article.