NEW YORK (TheStreet) -- Shares of General Electric (GE) were gaining 0.1% to $27.06 Wednesday morning following a report that the conglomerate is looking to sell its Japanese commercial finance operation.
GE is looking to sell the Asian GE Capital unit as part of its efforts to make the company smaller, according to the Wall Street Journal. The sale of the unit is still in early stages, but comes after CEO Jeff Immelt announced plans to sell off spin off much of the $500 billion in assets owned by the GE Capital unit.
Potential bidders for the Japanese GE Capital unit are expected to include Mitsubishi UFJ Financial Group's (MTU) leasing unit and Sumitomo Mitsui Financial Group (SMFG), according to the Journal. The sale process will reportedly formally begin sometime in the next few months.
TheStreet Ratings team rates GENERAL ELECTRIC CO as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL ELECTRIC CO (GE) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."