You think that you're having a bad Monday?
Consider for a moment the kind of day that General Electric's CEO Jeff Immelt is having.
General Electric Co. has drawn a big investment from activist shareholder Nelson Peltz, adding urgency to the industrial conglomerate’s effort to revive its long-depressed stock price.
Mr. Peltz’s Trian Fund Management LP said it has accumulated $2.5 billion in GE shares since the middle of May—a roughly 1% stake—making it one of the company’s top 10 shareholders. It amounts to the biggest investment ever for the investment firm, which has a history of pushing well-known companies to dramatically reshape themselves.
That's right, Immelt's Monday has been downright "Peltzian." After spending the last two years selling everything appliance-related, Immelt will now be pushed even harder to keep up the frantic pace of his "pivot."
Peltz is even publishing a little white paper that, according to WSJ, that will put public pressure on Immelt to keep up the good work.
In a “white paper” Trian said it would disclose publicly Monday, the firm calls for the company to steepen cost reductions, consider getting rid of even more of the finance arm and be more cautious on acquisitions. It says the company could take on $20 billion in debt and repurchase shares. In the paper, a copy of which was reviewed by The Wall Street Journal, Trian bemoaned what it calls a “lost decade” for the company’s shares.
So, again, you thought you were having a bad Monday?