Since 2001, GE, the worlds largest conglomerate, had been underperforming the S&P 500 stock index. In late

Question:

Since 2001, GE, the world’s largest conglomerate, had been underperforming the S&P 500 stock index. In late 2008, the firm announced that it was considering spinning off its consumer and industrial unit. What do you believe are GE’s motives for its proposed restructuring? Why do you believe it chose a spin-off rather than an alternative restructuring strategy?