GEWatcher - Why the rush?

Since 2000, I have written several articles, blogs and my book THE SECRET TO GE's SUCCESS and in all of them recommended that Immelt consider selling its traditional consumer and industrial businesses and focus on infrastructure, health care and other new technology based businesses, while using the financial services businesses to help sell the complex solutions and provide a means of managing short term earnings.

These are some of my comments:

• "There may be, however, some pruning required with Major Appliances as a disposition candidate. ("Succeeding a legend" Chief Executive Magazine- March 2000)
• "I think that broadcasting and even additional parts of the traditional GE lines, like major appliances and lighting, could be divested. These moves would permit the company to focus on its major solutions, technology business, while maintaining its strong financial services operations. (Decision Time for Immelt and Buffett Chief Executive Magazine- June 2007)

Therefore I am not against the disposition of the traditional GE, but I am concerned about the timing and appearance of panic. Why has Immelt decided to make these moves now, when the value of the traditional GE businesses are low and could get lower. Why is he now taking time and effort to be auctioneer and not trying to fix the problems he has? Why is the company increasingly looking like a "giant hedge fund" and not an operating business?

In my book, The Secret to GE's Success, I discussed the Welch era in-depth and had positive and negative assessments of his reign, but one of the things Jack did well was selling off assets and getting top dollar. I think that Immelt is not doing this. So why not?

Bill Rothschild, Rothschild Strategies Unlimited LLC.