Can ge still back out of selling transportation division.?It is on the upswing as far as orders and it is profitable.
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What’s the rational for selling the profitable businesses? Transportation has always been cyclic. Even in a down year they brought in well over $800 million profit at the second highest percentage among all of GE. Will be well over 1 billion this year. Once all the profit makers are gone, who’s left to pay the bills? They are only getting about $3 billion cash. That’s nothing compared to power’s billions and billions of losses. Either things are much worse than they let on or they are only in it for a quick gain giving up potential for the future. My bet is on the latter.
I think the deal is signed and the new CEO was part of the board that agreed to the deal. Expect the deal to proceed.