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GE Investors Greet CEO Culp’s Breakup Plan With a $15 Billion Shrug

  • Stock’s 12% drop is worse than broad market since announcement
  • Investor reaction runs counter to many analysts’ reception
Larry Culp
Larry CulpPhotographer: Christopher Goodney/Bloomberg
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General Electric Co.’s decision to unshackle its core industrial businesses by splitting itself into three separate companies hasn’t done much for investors. Far from it.  

Shares of the maker of jet engines, power equipment and medical scanners fell 3.5% at Tuesday’s close, resulting in a 12% slide since Chief Executive Officer Larry Culp made the surprise announcement about the split three weeks earlier. That decline wiped out about $15 billion in market value.