General Electric to lose majority stake in Baker Hughes at $3bn share sale

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General Electric to lose majority stake in Baker Hughes at $3bn share sale

On Tuesday, the 10th of September 2019, Houston, Texas-based Baker Hughes, a GE-owned international industrial service provider alongside one of the largest oil field services across the globe, issued a statement saying that the General Electric, owner of Baker Hughes, had been exploring an option to raise as many as $3 billion by selling stakes of its majority-owned Baker Hughes, which in effect would reduce the US industrial behemoth’s stake on Baker Hughes less than 50 per cent.

In point of fact, followed by the reveal of the news, share prices of Baker Hughes, a 50.4 per cent-owned by General Electric as of June 30th, fell by more than 3.7 per cent to $23.20 during extended trading on Tuesday (September 10th), while shares of General Electric were edged higher to $9.15.

Although General Electric had long been planning to sell some of its stakes of Baker Hughes, the issue was met with steep scrutiny last month when Madoff whistle-blower Markopolos had reported a lengthy statement accusing GE of improper counting of Baker Hughes’ earnings, capital alongside cash in General Electric’s financial statement.

Nonetheless, as a response to Markopolos response, General Electric had been quoted saying later on Tuesday (September 10th) that its accounting on Baker Hughes’ earnings’ report was appropriate.