GE to sell at least $12 billion shares to public; Warren Buffett invests at least $3 billion
By Daniel at 1 October, 2008, 2:57 pm
FAIRFIELD, Conn. (AP) — Warren Buffett’s Berkshire Hathaway is buying $3 billion worth of General Electric preferred shares, even as the diversified conglomerate is preparing to sell at least $12 billion worth of common stock to the public.
GE says Berkshire Hathaway Inc. will buy $3 billion of perpetual preferred stock in a private offering. Such stock carries a dividend of 10 percent and is callable, at a 10 percent premium, after three years. Berkshire also received warrants to buy $3 billion worth of common shares at $22.25 each over five years. GE says that the Berkshire funds will boost its capital position and permit it to make opportunistic investments if they arise.
The deal comes on the same day Fairfield, Conn.-based General Electric Co. said it was having no trouble selling their commercial paper, short-term loans it arranges directly with institutional investors.
http://biz.yahoo.com/ap/081001/ge_buffett_investment.html
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