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GE begins the sale of Baker Hughes with $ 2.7 billion in stock sales



<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "(Reuters) – General Electric Co (GE) on Wednesday said it plans to reduce its ownership in oil and gas company Baker Hughes A GE Co to 38.4% from 50.4% at June-end, and aims to raise $ 2.7 billion in the process. " data-reactid = "22"> (Reuters) – General Electric Co (GE) on Wednesday said it plans to reduce its ownership in the oil and gas company Baker Hughes A GE Co to 38.4% from 50, 4% at the end of June, and aims to raise $ 2.7 billion in the process.

The American conglomerate, which will lose majority control over Baker Hughes, said it would raise the amount through a public offer of 115 million Baker Hughes A shares at a price of $ 21.50 each, and through a private sale of $ 250 million Class B Baker Hughes shares to the oilfield supplier.

"The combined net proceeds of the offer and the repurchase will be approximately $ 2.7 billion, or approximately $ 3.0 billion, provided full exercise of the insurer's ability to purchase additional shares in the offer," GE said in a statement.

General Electric said it expects to continue to dispose of the remainder of its stake in Baker Hughes over time.

In a separate statement, Baker Hughes said it expects public offerings of its A shares to close on September 16, and that insurers will have 30 days to buy up to an additional 17.25 million shares from the sellers shareholders.

GE's representation on Baker Hughes's board will be reduced from five members to one, with John Rice expected to remain on the board, the companies said.

GE had long planned to sell off its stake in Baker Hughes.

However, the case was investigated last month when Madoff warned Harry Markopolos to issue a lengthy report, claiming in part that GE incorrectly counts Baker Hughes & # 39; income, capital and cash in GE's financial statements. GE has maintained that accounting was appropriate.

(Reporting by Kanishka Singh in Bengaluru; Editing by Christopher Cushing)


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