Capital One Said in Exclusive Talks for GE Health Lender

Updated on

Capital One Financial Corp. is in exclusive talks with General Electric Co. to buy the company’s health-care finance unit, people familiar with the matter said.

Negotiations are still under way and a deal could fall through, according to one of the people, who asked not to be identified because the talks are private. Both Capital One and Apollo Global Management were poised to make final bids for the business at the end of last month, people with knowledge of the matter said then.

The unit, a provider of mortgages and loans to nursing homes and other health-care companies, is among the GE operations on the block as Chief Executive Officer Jeffrey Immelt shrinks the GE Capital finance arm. GE is divesting about $200 billion of GE Capital assets to focus on manufacturing.

Final bids for the health lender were due in July, people familiar with the process have said, as Fairfield, Connecticut-based GE works to complete a sale that could fetch more than $11 billion.

“As a matter of practice, we do not comment on market rumors or speculation,” Tatiana Stead, a spokeswoman for McLean, Virginia-based Capital One, said in an e-mailed statement. “As disclosed in our SEC filings, the company has every intention to fully deliver on our approved capital distribution plan.”

A representative for GE Capital declined to comment. Reuters reported on Capital One’s exclusive status earlier Thursday.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE