Trian shared its formula for how GE would get to $2.20 a share by 2018: a combination of earnings from Alstom—Trian declared its public support for the deal (“We believe the Alstom transaction creates value”)—the aforementioned stock buybacks and dividends, and long-overdue operating-margin improvements (themselves a combination of cost reductions and improvements in gross margins). Et voilà. Trian’s alchemy looked highly credible on the pages of a PowerPoint presentation. But could Jeff and his team deliver on the promise of the “new GE,” an unprecedented transformation of the company?
