Fresh off his $5 billion Goldman investment, Warren Buffett is now investing $3 billion in General Electric, again with favourable terms.
Release: [GE will sell] $3 billion of perpetual preferred stock in a private offering to Berkshire Hathaway, Inc. The perpetual preferred stock has a dividend of 10% and is callable after three years at a 10% premium. In conjunction with this offering, Berkshire Hathaway will also receive warrants to purchase $3 billion of common stock with a strike price of $22.25 per share, which is exercisable at any time for a five-year term.
Additionally, GE is planning a $12 billion stock offering. Though maybe that offering will pull in more money, after all Buffett’s blessing helped Goldman Sachs.
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