Kohler and other companies were shortlisted for GE's industrial gas engine business bidding

GE is approaching selling its industrial gas engine business
for more than $3.
5 billion after narrowing the list of bidders, according to people familiar with the matter.

Manufacturers Cummins Inc.
and Kohler and a group made up of investment firms KKR & Co.
and B&C Industrieholding GmbH advanced to the next round of bidding
.

It is reported that since the final shortlist has not yet been determined, other bidders
may also be included.
Wärtsilä Wartsila Oyj, a marine engine manufacturer, also submitted a preliminary offer
.

Representatives for GE, Cummins, Kohler and B&C Industrieholding declined to comment
.
Representatives for KKR and Wärtsilä did not immediately respond to requests for
comment.

The sale of GE's distributed power business, which includes Jenbacher and Waukesha engines running on natural gas or other fuels, would be one of
the final deals in which CEO John Flannery plans to reduce $20 billion in assets.
John Flannery has agreed to sell the locomotive division and part of GE Healthcare to streamline the company and refocus on key markets
such as aviation and energy.

The changes are part of
Flannery's broader effort to reinvent the Boston-based company.
CEO Flannery is also cutting costs, rethinking the company's structure and weighing possible divestitures
.

Locomotive trading

GE last week agreed to sell its century-old locomotive manufacturing business for $11.
1 billion and merge with
Wabtec.
At closing, GE will receive $2.
9 billion in cash, which is tentatively expected to close in early 2019
.

Investors are closely watching GE's portfolio changes, hoping to provide a buffer
as the company grapples with debt and cash flow challenges.
GE said it expects disposal-related gains to reach $5 billion to $10 billion this year, depending on the timing
of distributed power and rail deals.

The Cummins acquisition will add industrial diesel and natural gas engines, generators for mining and oil and gas production, as well as data centers and hospitals
headquartered in Columbus, Indiana.
Located in Kohler, Wisconsin, known for
its plumbing and fixture business.
GE's operations will complement its line of small gasoline and diesel engines and generators, many of which are powered at 100 horsepower or less
.