Arthur-
<<Good management knows how to squeeze more earnings out of a revenue that past management due to their set policy which restricted them to look at some of the hidden values. With GE's strength(financial and management), the hidden values will change by the merger. >>
Like all the hidden values in Montgomery Ward, the bankrupt subsid of GE? Guess GE should have managed that one a little better, or taken decisive action when it would have helped- one or the other.
<<Then there is the scale factor, reduction of overhead and inefficiency, which is duck soup for Mr. Welch. >>
They are cutting 42% of the Hon people, so I guess there will be a lot less "scale" to worry about!! If you know anything about these things, you know that usually a lot of good people get cut, and a lot of fatheads stay on, and then more good people leave on their own because of this!
Why did GE pay so much for Hon if it is overstaffed by 42% ?
<<There are further consideration in some of the combined strength in selected industries. >>
GE bought a lot of low margin bus in Hon
<<Currently, of course, the focus is on seeking value and direction of the combined company. I hope there is no management philosophy conflicts >>
sounds like consultant-ese to me; I have no idea what you are saying. But I do know that mgt consultants get lots of work from deals like these so I am not suprised you are trying to make it sound like a good move for GE...
Welch just wanted one final big trophy. But he won't be around to help make the mess work.
regards,
Victor |
