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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (45014)	10/1/2008 2:22:44 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70981

GE Sells Preferred Stock to Buffett 10/01/08 - 02:02 PM EDT BRK-A GE (Action Alerts PLUS PICK) GS TSC Staff TSC Staff ROAD TO SUCCESS * Dykstra: Make Money Off the Fear * A COBRA That's Good for Your Health * The Real Secrets of Saving Money Sponsored by Nissan * * Article Tools * Email this Article * Print this Article * Rss Feed o o Editor's Picks o Bolling: A House of Cards on Solid Ground o Don't Waste Your Cash on REITs o A Big Test for the Market o Cramer: Wachovia Just Ran Out of Time o WaMu's Failure: Why It's Unusual, What's Next o * Del.icio.us * Digg * Facebook * StumbleUpon * Twitter * Yahoo! Buzz * Be the First Member to Recommend this article Recommend it Just a week after disclosing plans to make a big investment in Goldman Sachs (GS Quote - Cramer on GS - Stock Picks), Warren Buffett is placing another bet on a depressed stock, this time General Electric (GE Quote - Cramer on GE - Stock Picks). GE said Wednesday that it has reached an agreement to sell $3 billion of perpetual preferred stock in a private offering to Buffett's Berkshire Hathaway (BRK-A Quote - Cramer on BRK-A - Stock Picks). At the same time, GE plans to offer at least $12 billion of common stock to the public. The preferred stock being sold to Berkshire has a dividend of 10% and is callable after three years at a 10% premium. In connection with the offering, Berkshire will receive warrants to purchase $3 billion of common stock with a strike price of $22.25 a share, which is exercisable at any time for five years. As for the public offering, GE said the underwriters will have a 30-day option to buy additional stock to cover any overallotments. The company believes the offering will be priced before the U.S. market opens Thursday. Goldman is the bookrunner for the transaction. GE expects that Banc of America Securities, Citigroup, Deutsche Bank Securities, J.P. Morgan and Morgan Stanley will be added as additional managers for the offering. Shares of GE were down more than 7% before being halted ahead of the news. After the stock began trading, most of those losses were erased. P.S. Be among the first to learn Jim Cramer's '09 stock picks — in person! Reserve your place at TheStreet.com Investment Conference on Saturday, October 25, 2008 in New York City and get money-making strategies for the new year from Cramer, Dykstra, Altucher, Meisler, Farrell, Fitzpatrick and other market pros. You'll be able to meet them and ask them your questions, too. Find out more here. [Johnny: I don't know that I have confidence in the stock over the intermediate term, but Buffet is getting richly reward for actually having cash to invest and being willing to lead it. I don't know that the common shareholder make out so well. Obviously Buffets gets his money back regardless and gets paid a nice dividend along the way. Too bad regular guys on the street can't get the same kind of deal.]