Jun 26, 2018

GE's plan to get even smaller

GE CEO John Flannery (left) with former GE CEO Jeff Immelt (right). Photo by Stepanie de Sakutin/AFP/Getty Images).

General Electric said Tuesday that it plans to spin off its health care business and sell its 62.5% stake in oil services company Baker Hughes. It also wants to "materially shrink the balance sheet of GE Capital" by selling $25 billion of energy and industrial finance assets by 2020.

Why it's a big deal: Because GE's prior de-conglomerizing, including yesterday's $3.25 billion sale of its distributed power unit, was just a palate cleanser. This is the main course, and it's got all the fixin's.

Deal details: GE will sell 20% of the health unit, which reported $19 billion in 2017 sales, and spin off the remainder to GE shareholders via a tax-free transaction. The Baker Hughes sales will occur over the next two to three years. Baker Hughes has a current market cap of $40.5 billion.

More from CNNMoney's Matt Egan: "The health care spin off marks a major shift by GE, which had previously said health care would remain one of its three big businesses. The division makes MRI machines and sells other medical equipment to hospitals and labs. It raked in $19.1 billion of revenue last year, accounting for 16% of the company's total sales."

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U.S. coronavirus updates: Death toll passes 9,500

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios

Recorded deaths from the novel coronavirus surpassed 9,500 in the U.S. Sunday evening, per Johns Hopkins data. The death toll in the U.S. has risen over 1,000 every day since April 1.

Why it matters: U.S. Surgeon General Jerome Adams said on Sunday this upcoming week will be "the hardest and saddest week of most Americans' lives" — calling it our "our Pearl Harbor, our 9/11 moment."

Go deeperArrowUpdated 17 mins ago - Health

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 1,273,794 — Total deaths: 69,419 — Total recoveries: 260,193Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 337,274 — Total deaths: 9,633 — Total recoveries: 17,449Map.
  3. Federal government latest: Surgeon general says this week will be "our Pearl Harbor, our 9/11 moment." The USDA confirms that a Bronx zoo tiger tested positive for coronavirus.
  4. 2020 latest: "We have no contingency plan," Trump said on the 2020 Republican National Convention. Biden says DNC may have to hold virtual convention.
  5. States updates: New York Gov. Andrew Cuomo said the state is "literally going day-to-day" with supplies.
  6. World update: Queen Elizabeth II urges the British people to confront pandemic with "self-discipline" and "resolve" in rare televised address.
  7. What should I do? Pets, moving and personal health. Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

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Scoop: Inside the epic White House fight over hydroxychloroquine

Photo: Drew Angerer/Getty Images

The White House coronavirus task force had its biggest fight yet on Saturday, pitting economic adviser Peter Navarro against infectious disease expert Anthony Fauci. At issue: How enthusiastically should the White House tout the prospects of an antimalarial drug to fight COVID-19?

Behind the scenes: This drama erupted into an epic Situation Room showdown. Trump's coronavirus task force gathered in the White House Situation Room on Saturday at about 1:30pm, according to four sources familiar with the conversation. Vice President Mike Pence sat at the head of the table.

Go deeperArrowUpdated 2 hours ago - Health