African Development Bank, GE reach settlement on Alstom misconduct
Posted on Friday March 22, 2019
The African Development Bank Group said on Friday that two General Electric Co subsidiaries would be temporarily barred from bidding on power contracts as part of a settlement of misconduct cases. The agreement bars GE Power units in Egypt and Germany from bidding for up to 76 months, the bank said. The units, former parts of Alstom that GE acquired in 2015, were found to have engaged in bribery and fraud in 2006 and 2011, the bank said.
GE will be transparent about its challenges in its turnaround plan, CEO Larry Culp says
Posted on Thursday March 14, 2019
"There's a lot of capital there that we're gonna be able to put to use to bring down the leverage on the industrial balance sheet," General Electric CEO Larry Culp says.
[$$] How GE Built Up and Wrote Down $22 Billion in Assets
Posted on Wednesday March 13, 2019
When General Electric Co. bought Alstom SA’s power business in 2015, it cost it a little more than $10 billion. In effect, it is the $4 that squares up the balance sheet when a company spends $10 for something that will only add $6 to its net worth. In recording goodwill that exceeded the cost of the acquired power business, GE was essentially telling investors that the Alstom assets it bought had a net worth less than zero.
Gordon Haskett: General Electric Bull Thesis 'Dubious And Lacking Basic Intuition'
Posted on Wednesday March 13, 2019
As General Electric Company (NYSE: GE) prepares to provide a critical financial update for its shareholders on Thursday, investors are still trying to figure out exactly how a blue chip company worth $300 billion at the beginning of 2016 could now have a market cap of under $90 billion. WSJ's Michael Rapoport focuses on GE’s accounting treatment of a $10 billion 2015 deal with Alstom SA (OTC: ALSMY) as one example of the dubious way GE was propping up its bottom line right under investors’ noses. GE acquired Alstom’s Power business for $10 billion but then immediately registered $13.5 billion in goodwill on its books upon the deal’s completion.
