GE and Baker Hughes will separate

image courtesy of GE

image courtesy of GE

According to Reuters, GE will spin off its healthcare division and separate from Baker Hughes, not that much after its acquisition.The new company will focus on jet engines, power plants and renewable energy, which it is believed it will reward battered shareholders who have seen the stock lose more than half its value over the past 20 years.
GE shares jumped 8.7 percent to $13.86, on track for their best day in three years.
The company will spin off the profitable healthcare unit over the next 12 to 18 months, and sell its Baker Hughes stake over two to three years, for a total estimated divestment of $20 billion.