Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.

BREAKING NEWS

BREAKING NEWS

Baker Hughes, GE fall after offering priced at discount

Baker Hughes, GE fall after offering priced at discount
The logo of a General Electric (GE) facility is seen behind tree branches in Medford, Massachusetts, U.S., April 20, 2017. REUTERS/Brian Snyder -
Copyright
Brian Snyder(Reuters)
Text size Aa Aa

(Reuters) - Oilfield services company Baker Hughes <BHGE.N>, majority owned by General Electric Co <GE.N>, said a previously announced share offering was priced at a discount of 3.4 percent, sending shares of both companies lower on Wednesday.

The 92 million shares of Baker Hughes for sale by GE was priced at $23.00, below the stock's $23.81 closing price on Tuesday, and came a day earlier than planned.

GE, which is struggling to rebuild its industrial businesses, said on Tuesday it would sell a portion of its stake in Baker Hughes to repay debt.

GE will be able to raise nearly $4 billion from the sale if underwriters exercise options to buy an additional 9.2 million shares, with Baker Hughes repurchasing another 65 million shares in a private transaction at a maximum aggregate of $1.5 billion.

The sale would bring down GE's holdings in Baker Hughes to just north of a 50 percent stake, from 62.5 percent currently.

Shares of GE fell as much as 4.3 percent to $8.23, while Baker Hughes declined 5.3 percent to $22.55.

GE shares rallied as much as 13 percent before closing 7.8 percent higher in Tuesday's session, while Baker Hughes gained more than 3 percent.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Sriraj Kalluvila)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.