The yard sale just got bigger. Back in May, after shocking first quarter results pushed General Electric’s shares down 13 per cent in one day, Jeffrey Immelt, chief executive, embarked on some spring cleaning. The toasters, ovens and fridges in the low-margin appliance division were put up for auction. Now, GE has almost doubled the scope of the operation by including all the other businesses – including principally lighting and electrical distribution – that sit in the company’s consumer and industrial division. While Mr Immelt will still gladly consider any offers from brave buyers, he is more likely simply to spin off the entire division to existing shareholders.

It was always hard to see GE getting a good price for an essentially US-focused appliance business when private equity buyers were in hiding and when it was struggling in the face of a weak housing market and surging raw materials costs. A demerger, with existing shareholders receiving pro rata stakes in a newco, would reflect both depressed valuations and the difficulties involved in unpicking five years’ worth of hard work generating synergies between the operating companies. This way, at least the various businesses can continue to leverage the division’s integrated processes, common distribution and backroom operations.