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Is GE Healthcare spinoff still on track?

by Thomas Dworetzky, Contributing Reporter | November 02, 2018
Business Affairs

Rumors of a spinoff delay have swirled among industry watchers since Culp's arrival. At the beginning of October, CNBC's Jim Cramer said he thought the new CEO will put “everything on the table,” adding, “everything on the table means I don't necessarily think he's going to give away [GE Healthcare] because he understood how great that healthcare division is.”

Another industry watcher, CFRA research analyst Jim Corridore, told Power Lunch at the time that Culp could change his mind and keep healthcare with the company.

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“Maybe healthcare is not going to get spun off now,” he suggested, noting that, “maybe some of the parts that were going to be sold make more sense today.”

When Culp took the helm, GE Healthcare spokeswoman Jennifer Fox told CNBC that GE “plans to continue working toward separation," and that leadership remains “committed to establishing healthcare as a separate independent entity.”

EDITOR'S NOTE: A previous version of this article incorrectly stated that H. Lawrence Culp Jr. was in the Milwaukee area visiting with GE Healthcare employees when the comments were made. We have revised the article to show that the comments were allegedly made during a Q3 earnings call, per a GE Healthcare spokesperson.

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