Shares of General Electric jumped Monday after the firm said Chairman and CEO Jeff Immelt is stepping down, raising speculation that activist investor Nelson Peltz could have his way in refocusing GE on growing its industrial business.
Peltz's Trian Fund Management has called for GE to cut costs and increase profits in industrial operations while cutting back on financial services. While Peltz did not explicitly call for Immelt to step down, investors speculated this is ultimately what the activist fund was looking for.
"I think this is what they wanted. Certainly they wanted this fast," Jim Cramer said on CNBC's "Squawk on the Street. "
Peltz, the CEO and founding partner of Trian, had no comment to CNBC.
GE shares briefly climbed more than 4.5 percent Monday morning, after hitting a 52-week low on May 18. They were up about 3.8 percent as of 11:17 am ET.