GE to buy back shares from Berkshire Hathaway

AP News
Posted: Sep 13, 2011 8:41 PM
GE to buy back shares from Berkshire Hathaway

General Electric Co. says it is offering to pay $3.3 billion to buy back preferred shares bought by Warren Buffett's Berkshire Hathaway Inc. during the depths of the financial crisis.

GE said in a regulatory filing Tuesday that it has mailed its offer to Berkshire, which is based in Omaha, Neb.

The $3.3 billion price for the shares includes a 10 percent premium. GE, based in Fairfield, Conn., is also offering to pay accrued and unpaid dividends through the redemption date of Oct. 17.

Berkshire invested $3 billion in GE in October 2008. The move amounted to a huge vote of confidence in the iconic company that had been battered by the financial meltdown.

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