General Electric Co said on Tuesday it will spin off its healthcare business and divest its stake in oil-services company Baker Hughes, leaving the once-sprawling conglomerate focused on jet engines, power plants, and renewable energy. The changes are designed to reward battered shareholders and to strengthen GE's balance sheet by reducing debt, building up cash and further shrinking GE Capital, the company said. Shareholders will receive 80 percent of the value of GE Healthcare as a tax-free distribution of shares. GE shares jumped 6.4 per cent to $13.57 in early trading. The 126-year-old company, which was once the most valuable US corporation, will spin off the profitable healthcare unit over the next 12 to 18 months, and sell its Baker Hughes stake over two to three years.
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