Keith Sherin, GE Capital chairman and CEO, called Tuesday’s plan “the largest transaction to date” in the company’s bid to slim its operations. The Organization provides other financial services, including wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural financing, commercial finance, securities brokerage and investment banking, insurance agency and brokerage services, computer and data processing services, trust services, investment advisory services, mortgage-backed securities servicing and venture capital investment.
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The transaction also includes essentially all of GE Capital Corporate Finance’s portfolio of senior secured loans and leases for middle market companies across the US and Canada, as well as a few employees.
Wells Fargo & Company is a fiscal and bank holding company.
“This funding announcement comes on the heels of National Funding’s recently announced company growth milestones: over $1 billion deployed to small businesses nationwide; a 172% revenue increase over the past three years and the addition of 50 new employees in the first eight months of 2015”.
GE Capital headquarters at 901 Main Avenue in Norwalk, Conn. Importantly, Wells Fargo’s ability to continue to use its balance sheet heft to pursue such deals and organically grow its business base remains a key differentiating factor in a challenging operating environment. GE will retain the financing businesses that relate directly to GE’s industrial businesses.
WFC has been the subject of a number of other reports. Wells Fargo has a 52 week low of $46.44 and a 52 week high of $58.77.
In Tuesday’s deal, Goldman Sachs Group Inc. and Credit Suisse Group AG were the bankers for GE, which got legal advice from Weil Gotshal & Manges LLP. Finally, Macquarie decreased their target price on Wells Fargo from $51.00 to $50.00 and set an “underperform” rating on the stock in a research report on Friday, September 25th. The stock’s 50-day moving average is $25.16 and its 200-day moving average is $26.03.
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According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Scott Davis and John G. Inch have a total average return of -2.2% and 11.8% respectively. Three equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and eighteen have given a buy rating to the company’s stock.
