Warren Buffett To Invest $3B In GE, Similar Perks To His Goldman Deal

GE today announced plans to offer at least $12 billion of common stock to the public. The underwriters will have a 30-day option to purchase shares representing an additional 15%of the offering amount from GE to cover over allotments, if any. The offering is expected to be priced prior to tomorrow's market open in the U.S.

In addition, GE announced that it has reached agreement to sell $3 billion of perpetual preferred stock in a private offering to Berkshire Hathaway, Inc. The perpetual preferred stock has a dividend of 10% and is callable after three years at a 10% premium. In conjunction with this offering, Berkshire Hathaway will also receive warrants to purchase $3 billion of common stock with a strike price of $22.25 per share, which is exercisable at any time for a five-year term.

Read the full story here

-OR-

::HuffPost bloggers think this type of investment is a model for an alternative bailout ban
::Read about Buffett's Goldman Sachs deal and why analysts think neither that nor this Berkshire Hathaway GE deal is charity work.

Comments

[Hollis-Greene]

GE owns NBC. This man is buying things up folks...

[KillTheMessenger]

He isn't buying anything. He is acting like a bank. Just smarter.

[WIpatriot]

Way.

[Tyrione]

Grow up. The man owns DairyQueen. Are going to bitch about that? Investing in these key companies will grow them and stabilize the Economies of Scale.

You clearly have no concept that General Electric is an Umbrella Corporation which has dozens upon dozens of smaller corporations inside it. The same goes for IBM, Samsung, SONY, et.al.

[NTO08]

I hear this drivel and gobbledygook from goons like Suzy Orman and the idiots of CNBC...eno­ugh of this doublespeak!

[escapement]

Warren Buffet is a scum sucking bottom feeder who has never done a constructive thing for this country. He is going to shake these companies down for cash and then hand it over to Bill and Melinda Gates so they can pass it on to India. Why doesn't either of these two do something philanthropic for America? They make me sick.

[iambusto]

Would GE be better off if Warren Buffett didnt invest the money in GE, and GE raised the whole capital from the markets?

what % of posters here have had an economics and finance class?

[WIpatriot]

Hmmm...whe­re was Jeff Immelt today???

[NTO08]

I don't give a rat's a-- about a company that is part of military industrial complex...

[KillTheMessenger]

A country that fights two wars at once while sending its population shopping until it breaks its own financial system does not need philanthropy. It needs a giant straight jacket.

[Tyrione]

Spoken like a person with a call center job, a GED and the inability to become an Engineer. I'm weeping for you.

Buffet is old world investment. Neo/New World investment created this debacle. Old World, long-term, slow-growth, focus on infrastructure thinking [like Buffet] has been sorely lacking.

I don't agree with his choice of Gates for this huge fund; and I'd prefer he'd turned it into Infrastructure solutions, but the man has a right to do what he wants with his assets.

[NTO08]

No one gives a s--t about what Buffet does...

[dadw5boys]

Buffet does a lot for Americans you really should read up beofr you swallow both feet.

Need cheese with that whinn ?

[plymouth44]

xvt

[UNCLEJOE]

If Buffett can buy $5 Billion of GE stock, Just imagine what good stock at these bargain prices our Governmet can buy with &700 billion?

Are we Americans that Friggin smucks that we buy this 'Bailout' scam that pays good dollars for bad depts?

$700 Billion can buy all the homes in California, morgtage free with solar paneled roofs for free energy or finance another war like Iraq for 6 years.

[KillTheMessenger]

Buffet did not buy GE stock. He gave them a three billion dollar loan that has to be repaid with at least 10% annual interest. Just because he can make such a sweet deal does not mean anybody else (including the government) can.

[Tyrione]

He bought $3 Billion in two separate constructs. He has $3 Billion in stock options that can't vest for 3 years and an option of $3 Billion additional shares of common stock.

Would you prefer a Czar or Shah bought in, instead?

[iambusto]

if you guys hate Warren so much, why dont you see how good a deal GE would have gotten when trying to raise money at this market (notwithstanding their AAA rating !!).

Cash is king, Berkshire has got 32 billion of it (approx). he sets the price and the terms folks. not dumb ceo's of companies that are in need of cash !!

[oxford]

I see a bunch of people here that would much rather have the governments of Saudi Arabia, China, Arab Emerates step in here and buy up all of the distressed properties at bargain prices.
That must satisfy their anger. Dumb as dirt. Cutting off nose to spite face. SMART types.

[iambusto]

i dont care who buys in the companies. who cares if saudi invest in GE or China does or Buffett does. Since when did capital have a national flag on its top?

[PenFighter]

See now, that's the way it's supposed to work. You give billions to someone to save their A$$, you don't get trash for your money. You get equity, stock, guaranteed returns...­something.­.. anything but just the crap. Why should the American people get less for their money? Our billions are not worth any less than Warren Buffet's billions.

[RStone]

Why don't we let private equity solve this? Instead, we have politicians who can't balance their check books trying to do this.

http://www.boppoll.com

Obama '08

[cylindar]

Buffet is a dumbo. He is going to get burned on the GE deal. GE has been in the business a lot longer than he has. They know their stuff. But Buffet is a greenhorn and he is about to get his feathers clipped.

[fredlonsdale]

Buffet a greenhorn? I don't think so.

[bikerdude]

Funny, I've heard about Warren Buffet and his huge success in the investment community. I never heard of cylindar. Calling Buffet a greenhorn is like calling Tony Bennett a piano bar singer....

[NTO08]

Your tongue is firmly planted in Buffet's behind...t­ime to take it out.

[Big0725]

I've seen morons before, but you take the cake. A man who's net worth has been estimated between $50 and $62 BILLION just this year is called a greenhorn is sheer stupidity.

Christ Almighty, I feel stupider just reading your post!

Check out his bio on Wikipedia and get back to me.

[AlphaDoc]

>Christ Almighty, I feel stupider just reading your post!<

LMAO!!!

[NTO08]

Licking the behinds of the wealthy bottom feeders, are we?

[jsarets]

He gets a GUARANTEED 10% return on this investment so long as GE remains solvent. If we assume that GE is TBTF (which is almost certainly is given its national defense contracts), then there's no way he can lose.

[Furby]

I've read a lot of ridiculous comments, but you may just have won the all-time prize cylindar!! And as long as GE has been around, they don't have the cash Warren does, now do they. If I had a choice I'd take Berkshire stock over GE stock anyday.

[Sundialsvc4]

Smart man.

Money talks.

[Bond007]

I like Warren,,, he dirty but he clean. You know,,, he is shrewd but he is not evil
If I could make money like him,,, I would be living large,,,
Well, let me keep me on dreaming,,, it could happen

[Furby]

That must be the American dream you're dreaming. It's a dream, get it.

[ShamusNYC]

For those who look askew at Buffet - he didn't make these problems, the companies did. No one forced them to deal with him and they could have tried their luck with the Sovreign Wealth Funds (SWF).

Their management put the companies in this position - so if any shareholders are unhappy they know whom to yell at or fire.

[NTO08]

No, he didn't make these problems, but he is an opportunis­t...and Americans routinely hate opportunists.

[Gulfhome]

http://sucksalot.com/kw-Sa-Jeffrey-Immelt-CEO-General-Electric.aspx

[Hufferton]

Folks!

Look at Warren Buffett. Is he a man you want to trust with our money?.

He is the classic example of the middleman who learned early to "let other peoples' money work for you so you do not have to ever work for a living"

He is a paper money Tiger, nothing else. He is the 'growed-up' fat goofy kid that was picked on in middle school...

Now he is getting his revenge!!

[bikerdude]

That's one way to look at him. On the other hand he is one of the richest men in the world, seems happy as a clam and had donated billions to worthwhile organizations. Not bad for a goofy little fat kid...

[Hufferton]

Yes, and philantrope has its own financial rewards.

[iambusto]

Ya but he can buy and sell you, your family, your extended family. stop the envy !!

[TheJibreelaMonsters]

This is why Buffett is a Democrat (in public) becuase if he gave to GOP causes someone would be trying to defame his name as just another greedy rich white republican. He got his money but if I wanted to be rich like Warren that would be impossible becuase there will be a Dem that cant keep there hands out my pocket.
Cut the AMT and Capital Gains
Regulate Congress
Let Wall Street do it thing
Let Main Street do it thing
Let Detroit do its thing
Drill Baby Drill
Let there be victory in Iraq and Afghanistan
damm just vote Republican!
Palin will crush you

[indi1216]

will you still vote for him?

Please see

http://www.youtube.com/watch?v=PdJUCU1UH2w

[TheJibreelaMonsters]

http://www.youtube.com/watch?v=_MGT_cSi7Rs

my youtube video is better

[mommadona]

WELL, THAT'S HOW IT'S SUPPOSED TO WORK.

They eat their own until they stand all alone, starving.

Fire Sale for the Vultures.

It's the nature of the beast.
Raw Capitalism.
Like it?

[ugmold]

Finally, One Guy is going to own the World...we are all safe now