General Electric may its dump rail car division

Filed under: Deals, General Electric (GE)

General Electric Co. (NYSE: GE) may be close to selling its rail car leading division to GATX Corp. (NYSE: GMT). According to Bloomberg, GATX plans to "invest more aggressively" during a financial slowdown.

While the unloading of the division may help GE begin its process of moving slow-growing divisions out of its portfolio, it is likely to be seen on Wall Street as a minor deal and part of a process that is taking much to long. GE has several much larger businesses that drag on its earnings. Those include NBC Universal, the company's industrial division, and its medical supply operations.

GE's resistance to act more quickly to divest operations that no longer help accelerate EPS growth is one of the great business mysteries of the last four or five year. The company's stock still trades well below its 52-week high of $42.15.

GE knows what Wall Street wants, but it appears that the company simply does not care.

Douglas A. McIntyre is an editor at 24/7 Wall St.

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