GE to Buy Back Berkshire Stake
NEW YORK (
) --
General Electric
(GE) - Get Report
plans to buy back a preferred equity investment
Berkshire Hathaway
(BRK.B) - Get Report
made in the company during the depths of the financial crisis, according to a spokeswoman, citing comments by GE Chairman and CEO Jeff Immelt at the annual investor meeting Tuesday.
Buffett's $3 billion investment in Oct. 2008 pays a hefty 10% annual dividend. Buffett also received warrants to buy $3 billion in GE shares with a strike price of $22.25, according to
Bloomberg
.
Immelt said he would retire the stake no later than Oct. 2011, when it can be called for a 10% premium.
Buffett reached a similar deal in Sept. 2008 to take a $5 billion preferred stake in
Goldman Sachs
(GS) - Get Report
in Sept. 2008. Goldman is also interested in buying out Buffett's stake, according to earlier reports.
GE recently raised its
by 17% to 14 cents per share from 12 cents per share.
--
Written by Dan Freed in New York
.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.