General Electric Co (GE), refocusing on its industrial roots, is in talks to sell its US$74 billion commercial lending unit to Wells Fargo, a person close to the matter said on Monday.
GE is pursuing negotiations to sell all or part of the business to Wells Fargo, the fourth-largest US bank, with the talks also involving other bidders, the source said on condition of anonymity.
The source said the talks were in a preliminary stage and that no agreement was expected for several days.
The Wall Street Journal first reported on the GE talks. GE declined requests for comment.
The sale of the huge US conglomerate’s biggest lending operation would represent a major piece of its plan announced earlier this month to sell most of GE Capital, valued at US$200 billion, over the next two years.
Wells Fargo and private-equity firm Blackstone said on April 10 that they were buying most of GE Capital’s real-estate assets in a US$23 billion deal.
On Friday, GE posted a US$13.6 billion first-quarter loss as it took hefty charges on its plan to pare down GE Capital, part of an overhaul directed by CEO Jeff Immelt to focus on the firm’s industrial and technological prowess.
However, profits rose in four of its seven industrial businesses and GE said it was on track to meet its full-year forecast.
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