GE Takes $6 Billion Hit On Its Insurance Portfolio, CNBC Says Breakup Could Come In The Spring

General Electric Company GE said Tuesday it will take a $6 billion charge on its insurance portfolio. A few hours later, reports surfaced the company is now considering a breakup.

What You Need To Know

Sources close to GE told CNBC's David Faber that a split of the company is likely to occur as early as this spring. GE CEO John Flannery fell short of confirming a split on a conference call Tuesday, but he did hint significant changes are forthcoming.

"We are looking aggressively at the best structure or structures for our portfolio to maximize the potential of our businesses, continue to deliver outstanding products and services to our customers, enhance our ability to provide attractive opportunities for our employees, while maximizing value for our shareholders," Flannery was quoted by CNBC as saying.

Faber followed up in a Tweet, "Clearly, given its CEO's comments today, $GE has started down the road to breaking itself up."

What's Next?

GE's stock has been one of the worst performers within the Dow Jones Industrial Average, which prompted a debate among investors if the company is still worthy to be included in the index.

Investors don't appear to be optimistic in the reports or confident a split up would generate additional shareholder value. The stock lost more than 2.7 percent to $18.25 Tuesday morning.

Related Links:

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Image Credit: Momoneymoproblemz (Own work) [CC BY-SA 3.0], via Wikimedia Commons

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Posted In: CNBCNewsRumorsAsset SalesTop StoriesMediaDavid FaberDow Jones Industrial AverageJohn Flannery
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