FREE SUBSCRIPTION Includes: The Advisor Daily eBlast + Exclusive Content + Professional Network Membership: JOIN NOW LOGIN
Skip Navigation LinksHome / News / Read News


Trian Takes $2.5 Billion Stake in GE

October 05, 2015, 07:50 AM
Filed Under: Industry News

Trian Fund Management, L.P. disclosed that it has become a top ten shareholder of GE with a beneficial ownership of 98.5 million GE shares currently valued at approximately $2.5 billion. GE is now Trian’s largest investment.

Trian Principals Nelson Peltz and Ed Garden have a longstanding relationship with GE’s CEO Jeff Immelt. Since 2013, Trian has periodically engaged in informal dialogue with GE’s management team. Over the past several months, Trian has conducted investment due diligence, including on-site visits and meetings with leaders of various GE business units. Trian believes GE is executing a bold transformation that will generate attractive stockholder returns in the years ahead as the company reshapes its portfolio from a broad conglomerate, including a large regulated financial services business, to a leading industrial company focused on attractive infrastructure end markets. Trian has not asked GE for board representation but expects management to deliver on its commitments.

Nelson Peltz, Chief Executive Officer and a Founding Partner of Trian, said, “We invested in GE because it is undervalued and underappreciated by the market despite what we believe is a transformation that will allow its world-class industrial businesses to drive attractive shareowner returns. Our recent discussions with Jeff and his team have solidified our belief that they are highly motivated to fully deliver on GE’s transformation and share much common ground with Trian on ways to improve long-term shareowner value.”

GE Statement:

GE issued the following statement from GE Chairman and CEO Jeff Immelt regarding Trian Fund Management L.P.’s $2.5 billion investment in GE stock, which makes Trian one of GE’s largest shareholders:

“We welcome Trian’s significant investment in the Company. GE maintains an open dialogue with our shareholders and enjoys productive, collaborative relationships with them. I have known Trian Principals Nelson Peltz and Ed Garden for many years. Trian has a strong track record of working with companies to build long-term shareholder value, and has been an engaged shareholder. We appreciate their perspectives and look forward to a constructive ongoing dialogue with Trian as we execute our strategy to reshape the Company.

“GE is focused on improving margins and returns, reducing costs and the size of corporate, returning capital to shareholders and realigning our portfolio, most recently with the announced exit of most of GE Capital. Significantly, we have a plan to return more than $90 billion to investors through 2018 and are on track to complete our goal of closing $100 billion of GE Capital asset sales in 2015. We are transforming GE into a focused infrastructure and technology company, leading the intersection of the physical and analytical worlds.

“Our businesses are performing well in a volatile environment. In the second-quarter earnings announcement, GE raised its full-year Industrial operating earnings per share guidance to $1.13-1.20 and is on track for that goal.  We are confident our strategy will further enhance shareholder value and continue to position GE for long-term growth and success.”

Week's News

Comments From Our Members

You must be an Equipment Finance Advisor member to post comments. Login or Join Now.