(Bloomberg) -- General Electric Co. is nearing the sale of its factory power-generation unit to Advent International for at least $3 billion, the Wall Street Journal reported.
The private equity firm apparently triumphed over a competing bid from Cummins Inc. and a transaction may be announced as soon as Monday, the newspaper reported, citing people familiar with the matter who weren’t identified. The assets include the Jenbacher and Waukesha industrial-engine businesses, the Journal said.
A GE representative declined to comment on rumors or speculation. Advent and Cummins spokesmen couldn’t immediately be reached for comment outside regular business hours.
The potential sale could come just weeks after GE agreed to unload its century-old locomotive division, as Chief Executive Officer John Flannery sheds unwanted assets and narrows the company’s focus on markets such as aviation and health care. The divestitures, along with cost cuts and a revamped leadership, are designed to stem a slide in the company’s shares. The Boston-based company will be removed from the Dow Jones Industrial Average on June 26 and replaced by Walgreens Boots Alliance Inc.
General Electric has dropped 25 percent so far this year to close at $13.05 a share on Friday. In the last year, the company has lost more than half of its market value.
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