General Electric Shares Spike Up Amid Sale Of GE Capital Real Estate Assets

General Electric Company GE on Friday announced plans to drastically shrink the size of GE Capital, its finance arm and once driver of the company's earnings. However, following the 2008 financial crisis, GE Capital became indicative of risk to the overall company, requiring TARP funds and being labeled by federal regulators as a "systemically important financial institution."

Shares of GE rallied Thursday by nearly 3 percent and prices were indicated another 8 percent higher in Friday's pre-market session, last trading at $27.90. Prior to this morning's move, shares have been flat over the past 52 weeks, trading in a $4 range.

GE said it will retain GE Capital's aircraft leasing operations and financing for the energy and healthcare industries, but will spin off and sell much of the $363 billion unit's other activities. First, GE Capital will sell its real estate assets to Wells Fargo, the Blackstone Group and others for $26.5 billion.

GE will take an initial charge of $16 billion in Q1 2015, while also paying $6 billion from repatriating cash from overseas. However, with these moves, GE expects its industrial business to account for 90 percent of its earnings in 2018, up from 58 percent last year.

What's @Jack_Welch's take on $GE news? "I like the package. It looks like a smart move and right for the changing financial landscape."

— Nick Dunn (@NickDunnCNBC) April 10, 2015