Under the deal, the Boston-based industrial conglomerate will sell up to 101.2 million shares on the market and Baker Hughes will repurchase another 65 million shares from its parent. Based on Tuesday’s share price of $23.76, the sale would raise around $3.97 billion.
GE had told investors in June it planned to sell down its 62.5% stake in Baker Hughes as part of a restructuring plan to raise cash and break up the conglomerate. Investors have worried about the company’s high debt load and losses in its core power division. GE has also agreed to sell its locomotive business and spin-off its health-care unit.@ wsj.com