During Monday’s current trade, General Electric Company (NYSE:GE)’s shares lost -2.31% to $27.85, as on last Friday GE (NYSE:GE), declared that it will create a simpler, more valuable company by reducing the size of its financial businesses through the sale of most GE Capital assets and by focusing on continued investment and growth in its world-class industrial businesses.
GE and its Board of Directors have determined that market conditions are favorable to pursue disposition of most GE Capital assets over the next 24 months except the financing “verticals” that relate to GE’s industrial businesses. Under the plan, the GE Capital businesses that will remain with GE will account for about $90 billion in ending net investments (ENI) not including liquidity – about $40 billion in the U.S. – with predictable returns in excess of their cost of capital.
About $16 billion of after-tax charges are predictable to be recorded in the first quarter of 2015 in connection with the plan – of which about $12 billion are non-cash. The charges comprise taxes on repatriated earnings, asset impairments due to shortened hold periods, and charges on businesses held for sale, counting goodwill allocation.
GE anticipates that the earnings influence of the GE Capital exits will be offset by the buyback over the exit period.
GE will execute this strategy using an efficient approach for exiting non-vertical assets that works for GE and for GE Capital Corporation (GECC) debtholders and GE shareholders. An element of this approach involves a merger of GECC into GE and the creation of a new intermediate holding company for GECC businesses.
GE has amended its revenue maintenance contract to guarantee all tradable senior and subordinated debt securities and all commercial paper issued or guaranteed by GECC. The guarantee will replace the current revenue maintenance covenant. GE will maintain substantial liquidity and capital through the transition and does not expect to issue incremental GE Capital long-term debt for at least five years. Commercial paper will be further reduced to about $5 billion by the end of 2015.
“We are proud of the GE Capital team, the outstanding businesses that GE Capital employees have built, and how they have delivered for customers and shareholders over many years,” said Immelt. “The GE Capital team has displayed great resiliency, facing tough cycles and driving strong results.”
J.P. Morgan and Centerview Partners have offered financial advice to GE, and Bank of America offered advisory services. Weil, Gotshal & Manges, Davis Polk, and Sullivan & Cromwell offered legal advice. For the Real Estate deal, Bank of America and Kimberlite Advisors offered financial advice and Hogan Lovells offered legal advice.
General Electric Company (GE) operates as an infrastructure and financial services company worldwide. The company’s Power and Water segment offers gas, steam and aeroderivative turbines, nuclear reactors, generators, combined cycle systems, controls, and related services; wind turbines; and water treatment services and equipment.
During an early morning trade, Apple Inc. (NASDAQAAPL)’s shares climbed 0.59% to $127.85, after orders for the Apple Watch quickly soared to nearly 1 million in the U.S. on Friday, according to one research firm’s estimate.
Nearly two-thirds of customers purchased the Sport model, the least expensive at about $383. The black band was the most popular and the larger 42-mm variety was chosen 71% of the time, according to Slice Intelligence.
Apple also sold 48,000 of its new MacBook laptops on Friday, Slice estimated.
Financial analysts have predicted that first-year sales of the watch could reach 40 million worldwide.
Apple Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications.
Bank of America Corporation (NYSE:BAC), during its Monday’s current trading session gained 0.46%, to $15.79, after Bank of America declared the Board of Directors has authorized dividends on preferred stock.
A quarterly cash dividend of $0.38775 per depositary share on the 6.204 percent Non-Cumulative Preferred Stock, Series D, is payable on June 15 to shareholders of record as of May 29.
A quarterly cash dividend of $0.24722 per depositary share on the Floating Rate Non-Cumulative Preferred Stock, Series E, is payable on May 15, to shareholders of record as of April 30.
A quarterly cash dividend of $1,022.22222 per share on the Floating Rate Non-Cumulative Preferred Stock, Series F, is payable on June 15 to the shareholder of record as of May 29.
A quarterly cash dividend of $1,022.22222 per share on the Adjustable Rate Non-Cumulative Preferred Stock, Series G, is payable on June 15 to the shareholder of record as of May 29.
A quarterly cash dividend of $0.4140625 per depositary share on the 6.625 percent Non-Cumulative Preferred Stock, Series I, is payable on July 1 to shareholders of record as of June 15.
A semi-annual cash dividend of $40.625 per depositary share on the Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series M, is payable on May 15 to shareholders of record as of April 30.
A semi-annual cash dividend of $26.00 per depositary share on the Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series U, is payable on June 1 to shareholders of record as of May 15.
A semi-annual cash dividend of $25.625 per depositary share on the Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series V, is payable on June 17 to shareholders of record as of June 1.
A quarterly cash dividend of $0.410625 per depositary share on the 6.625 percent Non-Cumulative Preferred Stock, Series W, is payable on June 9 to shareholders of record as of May 15.
A quarterly cash dividend of $0.18750 per depositary share on the Floating Rate Non-Cumulative Preferred Stock, Series 1, is payable on May 28 to shareholders of record as of May 15.
A quarterly cash dividend of $0.18542 per depositary share on the Floating Rate Non-Cumulative Preferred Stock, Series 2, is payable on May 28 to shareholders of record as of May 15.
A quarterly cash dividend of $0.3984375 per depositary share on the 6.375 percent Non-Cumulative Preferred Stock, Series 3, is payable on May 28 to shareholders of record as of May 15.
A quarterly cash dividend of $0.24722 per depositary share on the Floating Rate Non-Cumulative Preferred Stock, Series 4, is payable on May 28 to shareholders of record as of May 15.
A quarterly cash dividend of $0.24722 per depositary share on the Floating Rate Non-Cumulative Preferred Stock, Series 5, is payable on May 21 to shareholders of record as of May 1.
Bank of America Corporation, through its auxiliaries, provides banking and financial products and services for individual consumers, small and middle market businesses, institutional investors, large corporations, and governments worldwide.
Finally, QUALCOMM Incorporated (NASDAQ:QCOM), gained 0.38% Monday, after Cerner Corp. (CERN) and Qualcomm Life, Inc., a partner of Qualcomm Incorporated (QCOM), declared a contract to extend Cerner’s industry leading medical device connectivity capabilities beyond the hospital to the home. Cerner will leverage Qualcomm Life’s FDA listed 2net(TM) Platform and Hub to seamlessly capture data from medical devices and sensors within a patient’s home, and transmit it to Cerner health care clients through Cerner’s CareAware(R) device connectivity platform. Through this initiative, care providers can remotely monitor chronically ill patients in near real-time to enable proactive engagement to potentially reduce the risk of an acute care episode.
Qualcomm Life’s 2net Platform collects, stores and aggregates patient data from connected medical devices offered to the patient, such as weight scales, blood pressure monitors and pulse oximeters. These data values will transmit via CareAware(R) to the Cerner Millennium(R) electronic health record (EHR) and is viewable to the patient in HealtheLife℠, Cerner’s patient engagement solution. Extending CareAware to integrate devices within the home to the patient’s EHR will provide health care organizations a more comprehensive view in their efforts to focus on chronic condition administration, reduce readmissions and improve patient health and satisfaction. The connected devices will be demonstrated in Cerner’s booth (913) and Qualcomm Life’s Ecosystem Pavilion (6420 in Hall B) at HIMSS15, the largest health information technology event in the industry, April 12 — 16 in Chicago, Ill.
Qualcomm Life will join Cerner’s CareAware certification program, an initiative that creates alliances between Cerner and medical device manufacturers to better attain data from devices to integrate with the EHR via CareAware device connectivity architecture.
Agnesian HealthCare is one of the first enterprise clients to implement this powerful combination of technologies to remotely monitor and manage at-risk patient populations.
Cerner’s health information technologies connect people, information and systems at more than 18,000 facilities worldwide. Recognized for innovation, Cerner solutions assist clinicians in making care decisions and enable organizations to manage the health of populations.
QUALCOMM Incorporated designs, develops, manufactures, and markets digital communications products and services in China, South Korea, Taiwan, and the United States. The company operates through three segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Planned Initiatives (QSI).
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