Our August 5 story that General Electric Co might be looking for a buyer for its GE Information Services information network, timesharing and software business (CI No 988) has been confirmed from an unlikely quarter – GTE Corp. The Stamford, Connecticut phone company is on record as saying that it considered buying the business, but rejected the idea in part because the business didn’t seem to have enough profit potential. The information services business is regarded as such a prize one by the likes of IBM, Bull SA in France and British Telecommunications Plc and Cable & Wireless Plc over here that it seems likely that GE will be able to get a price for the unit well in excess of it fundamental valuation. British Telecom in particular said that it is interested in acquisitions to augment its software skills, especially if it involves new US business. The first suggestion that the business might be for sale came a year ago when news was leaked of an internal memo circulated among GE employees warning them of a corporate move away from GE Information for its networking services.
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