General Electric Co. (GE) said Wednesday, as it reported second-quarter results ( ), that it is launching a program to fully monetize its ownership position in oil services company Baker Hughes Co. (BKR) over about three years. GE disclosed Wednesday that it owned 377.4 million shares of Baker Hughes, which based on Tuesday's stock closing price of $15.87 would be valued at $5.99 billion, and a promissory note. GE has recorded a $1.85 billion gain on its Baker Hughes holdings for the three months ended June 30, but has recorded a loss of $3.87 billion for the six months ended June 30. GE said its monetization plan is designed to allow GE to sell its shares at a price that is approximately the volume-weighted average price of Baker Hughes shares over an extended period of time. The company said it expects to use the proceeds from the sale of share to reduce debt. GE's stock rose 1.7% in premarket trading, after the company reported a wider-than-expected second-quarter loss but revenue and free cash flow that beat expectations. The stock has tumbled 38.3% year to date through Tuesday, while Baker Hughes shares have dropped 38.1% and the Dow Jones Industrial Average has lost 7.6%
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 29, 2020 16:19 ET (20:19 GMT)
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