General Electric Co. (GE) plans to sell millions of shares in spinoff Baker Hughes (BHGE), and will no longer control the majority of shares in the company. Baker Hughes said in an announcement Tuesday afternoon that GE and other affiliates plan to sell 105 million shares in an underwritten secondary offering, and sell $250 million in stock back to Baker Hughes. Baker Hughes, which saw shares drop about 3% in late trading, intends to finance the share repurchase with cash "and other available sources of liquidity." The sale means GE's stake in Baker Hughes will drop lower than 50%, which reduces the number of board members that GE gets to designate from five to one. John G. Rice will remain on the Baker Hughes board as GE's official designee, and Lorenzo Simonelli and W. Geoffrey Beattie are expected to remain on the board without affiliation to GE. Jamie Miller and James Mulva, GE's other board designees, will offer their resignations, according to the announcement. GE shares, which have suffered a long decline including a 24% drop in the past year, ticked up about 0.3% in late trading Tuesday after the announcement.
-Jeremy C. Owens; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 10, 2019 16:27 ET (20:27 GMT)
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