Trian Partners said to be optimistic about GE turnaround

  • Trian Partners said to be optimistic about a GE turnaround.
  • Incoming CEO John Flannery's industrial knowledge and financial background are seen as a positive.
An employee of General Electric works on a gas turbine at the GE plant in Belfort, France.
Sebastien Bozon | AFP | Getty Images
An employee of General Electric works on a gas turbine at the GE plant in Belfort, France.

Nelson Peltz's Trian Partners has been conspicuously quiet after the surprise announcement by Jeffrey Immelt that he was stepping down as CEO of General Electric, and would be replaced by company veteran John Flannery.

But I'm hearing from sources familiar with the investment firm's thinking that they're optimistic about Flannery's abilities to turn the company around and believe Flannery's industrial knowledge as well as his financial background with the company gives him the ability to understand where to invest and when.

The feeling I get from my reporting is that everything is on the table — especially the real possibility that GE ends up distributing the shares of Baker Hughes it will be receiving in August as part of the deal the two companies announced back in October 2016.

Trian took a near $2 billion stake in GE in 2015.