Conglomerates could hardly be less fashionable. The diversified industrial empires of old are taught as case-studies in underperformance, misaligned management incentives and poor capital allocation. Bosses fear that a “conglomerate discount”—the difference between the market value of a firm and the hypothetical value of its constituent parts—will invite activist investors to agitate for divestments. Focus is now the idée fixe of industrial organisation.
Listen to this story. Enjoy more audio and podcasts on iOS or Android.
Your browser does not support the <audio> element.
Listen to this story
Save time by listening to our audio articles as you multitask
OK
Few were surprised when General Electric (GE), a
→ Continue reading at The Economist
