General Electric Co. announced Monday that the company raised approximately $ 735 million by reducing its large stake in Baker Hughes Co. the day after the oilfield products and services company reported disappointing fourth quarter results .
On a Form 4 filed with the Securities and Exchange Commission, GE
GE, + 0.36%
said it sold 38,007,041 shares of Baker Hughes
on Jan 22 at $ 19.34. That price was 12.8% below Baker Hughes stock’s closing price of $ 22.17 on Friday.
In its filing, GE announced that the Class A Shares would be sold to an “unaffiliated financial institution” over the financial institution’s hedging period at a price based on the volume-weighted average price.
Baker Hughes’ stock was down 1.5% on Jan. 21 after the company reported a surprising adjusted loss per share in the fourth quarter, then fell another 1.7% on Friday.
After the $ 735.06 million share sale, GE still owned 311,432,660 Baker Hughes shares, or 30.1% of the issued shares.
Based on the closing price of Baker Hughes stock on Friday, GE’s remaining stake is estimated at around $ 6.90 billion.
Shares of GE, that is should publish the results of the fourth quarter prior to opening on Tuesday, it rose 0.2% on the Monday before trading, while Baker Hughes stock fell 1.7%.
Over the past three months, GE stocks are up 45.6% and Baker Hughes stock is up 55.1% through Friday while the S&P 500 index is up
has gained 10.9%.