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Since 2001, GE, the world’s largest conglomerate, had been underperforming the S&P 500 stock index. In late 2008, the fi

Posted: Sun Jun 05, 2022 8:54 pm
by answerhappygod
Since 2001, GE, the world’s largest conglomerate, had been
underperforming the S&P 500 stock index. In late 2008, the firm
announced that it was considering spinning off its consumer and
industrial unit.
If GE decided to undertake an equity carve-out rather than a
spin-off, what is the major drawback of this strategy?