The targeted consumer here are those who do not have adequate insurance to offer a credit card for short term financing. The article states it will consider an IPO for GE Capital and I am assuming there could be other divisions rolled in here besides just this one when it all comes out. This company as a stand alone with relying on consumer financing might be one investors may want to dig in deeper to take a look at. This brings me to a recent post about SEC Tiered subsidiaries as we are not seeing the big picture any longer with many companies and I don’t know if this is the case with GE but so many are not listing subsidiaries anymore with the SEC, so hard to see the whole picture and I am really beginning to wonder with complexities today what impact this is going to have not only with clients but investors as well. How much is all this consumer debt worth I guess is the big question, 2 billion? BD
SEC Rules Ask for Disclosure Only When Subsidiary Operations Are “Significant”-Was The Federal Hub Contract Awarded to QSSI Not Significant When the Company Was Bought By United Health Group?–Subsidiary Watch
NEW YORK (Reuters) - General Electric Co is looking to sell its CareCredit healthcare financing business - a unit within its massive GE Capital financial arm - in a deal that may be valued at about $2 billion, people familiar with the situation told Reuters on Friday.
GE has hired Goldman Sachs Group Inc to oversee the sale process and has attracted buyout interest from a few banks as well as at least one nonbank financial services firm, according to the four sources, who wished to remain anonymous because they are not permitted to speak to the media.
In May, GE CEO Jeff Immelt said the company is considering spinning off parts of GE Capital through an initial public offering as part of its plan to reduce the size of its business. The U.S. conglomerate is seeking to shrink its financial services division from $419 billion in December to $300 billion to $350 billion by end of 2014.