GE to sell millions of Baker Hughes shares no longer has majority control

General Electric Co.

GE, + 2.01%

plans to sell millions of shares in spinoff Baker Hughes

BHGE, -0.29% ,

and will no longer control the majority of the shares in the company. Baker Hughes said in an announcement Tuesday afternoon that GE and other affiliates are planning to sell 105 million shares in a signed secondary offer and sell $ 250 million in stock back to Baker Hughes. Baker Hughes, which saw shares fall about 3% in late trading, intends to fund the stock purchase with cash "and other available liquidity sources." The sale means that GE's stake in Baker Hughes will fall below 50%, reducing the number of directors that GE may appoint from five to one. John G. Rice will remain on the Baker Hughes Board as GE's official design, and Lorenzo Simonelli and W. Geoffrey Beattie are expected to remain on the Board without affiliation with GE. Jamie Miller and James Mulva, GE's other board members, will offer their layoffs, according to the announcement. GE shares, which have seen a long decline, including a 24% drop over the past year, rose 0.3% in late trading Tuesday after the announcement.

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