14507 Thu, 05/15/2008 - 11:56am
FAIRFIELD, Conn.–General Electric is in the midst of discussions involving a possible sale, spinoff or partnerships for its appliance division.
According to a source close to the situation, discussions about the options for the division have been taking place for some time. Yesterday, newspaper reports surfaced that GE is planning to sell the division, and that the company is working with Goldman Sachs on a possible auction for the unit.
The source said, however, that the other options are still in play for the division. In recent years, GE has sold its plastics division and spun off its financial assurance division, and has created partnerships involving other units in the company. This strategy is consistent with the company’s strategy of concentrating on high-margin, high-growth businesses, the source said.
Jeff DeMarrais, director of communications for GE, said the company had no comment on the newspaper reports about the sale. The newspaper accounts said a sale of the appliance division could bring GE at least $5 billion. The division—which manufactures refrigerators, microwaves and washer-dryers—is one of the oldest within the company.