GE, AerCap entice investors with deal still shrouded in mystery

General Electric and AerCap Holdings have yet to announce any deals, but investors applauded reports that the two companies are discussing a combination that would create a giant of aircraft finance. AerCap gained the most in almost four months Monday while GE rose to the highest since May 2018. Already the world’s two biggest jet lessors, the companies are talking about getting even larger by joining their leasing operations, said people familiar with the matter. A deal may be reached as soon as this week, said the people, who asked not to be named discussing the talks. For GE, the negotiations spurred optimism that a transaction would accelerate CEO Larry Culp’s push to revitalize the once-mighty manufacturer. While details of the potential deal structure remain unknown, analysts said an agreement would be likely to diminish the risks of GE’s financial services arm, which nearly sank the company during the 2008 financial crisis and has remained a trouble spot in recent years. Investors have been cautious about GE Capital and other financial risks beyond the manufacturer’s core operations, Bank of America Corp. analyst Andrew Obin said in a client note. “A smaller GE Capital would simplify GE‘s story.”<br/>