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Trian Fund Management takes $2.5 billion stake in General Electric

Staff writer ▼ | October 5, 2015
Trian Fund Management said it bought $2.5 billion in shares of General Electric since May.
General Electric
Buying shares   Trian believes GE has significant long-term potential
"Trian believes GE has significant long-term potential and that its implied target value per share, including dividends, could be $40 to $45 by the end of 2017 based on our view that GE can deliver EPS of at least $2.20 in 2018," Trian Chief Investment Officer Ed Garden said.

Trian called the company to increase cost cuts, consider selling more of its finance businesses and be cautious on acquisitions. GE could return over 40 percent of its current market value to shareholders by the end of 2018, Trian said.

The fund recommended that GE explore more share buybacks and consider joint ventures and initial public offerings to further reduce the size of GE Capital's balance sheet over time.