As editor of The Wall Street Journal reported on its Web site late yesterday that GE Plastics is for sale. The report, which cited unnamed sources, speculated that the business might fetch $10 billion.
Rumors about GE's plans for its Plastics unit have been floating around for months. Just because it's apparently looking for bidders now is no guarantee that a deal will happen -- GE certainly is not a distressed seller. My guess is that they have a pretty good idea that they'll get a bid that will make a sale attractive. But they wouldn't mind sparking a few competitive bidders to raise the price.
Since GE rotates executives through many of its businesses, most of the company's top executives have experience in the Pittsfield, Mass.-based plastics unit. The most famous, of course, is Jack Welch, the former chairman and CEO who started his career working with fellow plastics Hall of Famer Dan Fox.
Many names will be floated as potential buyers for GE Plastics in the next few weeks. I wouldn't be surprised if some competitors signed on to get a peak at as much of the unit's financial information as they can get. But you have to believe that it's going to be a financial buyer, not a competitor, who has the best chance to own GE Plastics.
And if that's the case, stay tuned: I have a feeling that life under a financial owner is going to be a heck of a lot different for the folks in Pittsfield.