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GE Raising More Emergency Capital?

Posted Nov 20, 2008 09:55am EST by Henry Blodget in Newsmakers, Recession

From ClusterStock, Nov. 20, 2008:

GE is talking to several sovereign wealth funds about becoming investors. Not clear from story below whether company would issue more stock (dilute current shareholders) or whether the funds would buy on open market. Probably the former.

Bloomberg: GE is in talks with four Asian sovereign wealth funds, including China Investment Corp., to win them as investors.

The funds also include Government of Singapore Investment Corp. and Temasek Holdings Pte, also of Singapore, as well as China Safe Investments Ltd., Brussels-based spokeswoman Elma Peters said in a phone interview today.

The negotiations follow GE's $8 billion venture with Abu Dhabi's Mubadala Development Co. as the U.S. company seeks to tap infrastructure spending outside its home market. Getting venture partners to become shareholders has the added advantage of establishing a more stable investor base.

Talks with "a number" of sovereign wealth funds interested in water-technology projects have been held, Steve Bolze, who runs GE's power and water unit, said yesterday in a phone interview from Belfort, France.

Peters confirmed earlier comments from Ferdinando Beccalli- Falco, international head at Fairfield, Connecticut-based GE, reported by the Financial Times Deutschland.

If GE is raising capital with the stock at $14, trends in the finance business have probably deteriorated further.

See Also: Could GE Go to Zero?

27 Comments

madmilker
madmilker - Thursday November 20, 2008 09:59AM EST

they couldn't raise cane......much less $$$$$$$!

JOYCEJ
JOYCEJ - Thursday November 20, 2008 10:17AM EST

I think at this time- The question on everyone's mind is. How LIKELY is it that the dividend will be cut or dropped.?

ANTHONY
ANTHONY - Thursday November 20, 2008 10:19AM EST

ALL THE MONEY AMERICANS SPEND ON FOREIGN PRODUCTS,DOESENT END UP IN A VAULT IN CHINA ,ITS INVESTED AND IT BUYS INFRA STRUCTURE ,IF BUFFETT ,SORIOS. YANG, CAN MAKE A BUCK, WHAT ARE THE ODDS YOUR GOING TO MAKE IT,, AMERICAN COMPANIES CANT MAKE MONEY ANYMORE IS BECAUSE LIKE ALL AMERICANS "TAXES FROM FED, STATE AND LOCAL "LEAVE EVERY ONE IN THE SAME BOAT, BROKE ,ITS TAKEN 40 + YEARS TOACHIEVE THIS, WELFARERS , CRIMINALS AND POLITICIANS ARE EMPLOYED BY GOVERNMENT,

Reedersong
Reedersong - Thursday November 20, 2008 10:20AM EST

They would love the Gov't to pass a law to force you to buy those new MERCURY-CONTAINING lightbulbs. God forbid you should drop one of those damned things.

you
Yahoo! Finance User - Thursday November 20, 2008 10:26AM EST

Cane is harder to raise than $$

you
Yahoo! Finance User - Thursday November 20, 2008 10:30AM EST

What is this crap? It is totally false and there are dozens of stories out this morning with GE denying this rumor that was apparently started by some "news" feeds seeking to pull in readership by publishing the most damaging, inflammatory, sensational story possible.

you
Yahoo! Finance User - Thursday November 20, 2008 10:31AM EST

What is this crap? It is totally false and there are dozens of stories out this morning with GE denying this rumor that was apparently started by some "news" feeds seeking to pull in readership by publishing the most damaging, inflammatory, sensational story possible.

dano
dano - Thursday November 20, 2008 10:36AM EST

I used to work for GE. They were (are?) a well managed company back when Jack Welch was at the helm. A great company to work for as they empower the employees, and I haven't seen much of that with other employers. I believe that many other companies would go under way before GE would. By the other companies going under first, this would cut down the competition and help GE. That's why I don't believe GE will go under as there is a whole lineup of companies in even worse shape.

you
Yahoo! Finance User - Thursday November 20, 2008 10:40AM EST

Without GE the future will be darker... ha ha

A
A - Thursday November 20, 2008 10:41AM EST

It's "raising Cain" by the way... http://en.wiktionary.org/wiki/raise_Cain ... a reference to the first murderer in Biblical history.

A
A - Thursday November 20, 2008 10:47AM EST

See how we are selling off our future. Warren Buffet made a great analogy: "Our country has been behaving like an extraordinarily rich family that possesses an immense farm. In order to consume 4% more than they produce -- that's the trade deficit -- we have, day by day, been both selling pieces of the farm and increasing the mortgage on what we still own." And this has been going on for the last 20-30 years at least, but has accelerated in the last 10-12 years as society increasingly forgot the painful lessons of the Great Depression. We stopped saving and became indebted as individuals and as a whole society. "The borrower is slave to the lender." -- Proverbs 22:7 What if the "sovereign funds" operated by oil-rich countries and manufacturing/export countries, start buying up large chunks of our economy, as cash-desperate banks and companies look anywhere for aid? A drug addict sells away his household bit by bit, and gets into ever-increasing debt to get his next fix. We are selling our land and our future for our next fix of oil and imported goods, and to service the debt we have already built up.

A
A - Thursday November 20, 2008 10:47AM EST

See how we are selling off our future. Warren Buffet made a great analogy: "Our country has been behaving like an extraordinarily rich family that possesses an immense farm. In order to consume 4% more than they produce -- that's the trade deficit -- we have, day by day, been both selling pieces of the farm and increasing the mortgage on what we still own." And this has been going on for the last 20-30 years at least, but has accelerated in the last 10-12 years as society increasingly forgot the painful lessons of the Great Depression. We stopped saving and became indebted as individuals and as a whole society. "The borrower is slave to the lender." -- Proverbs 22:7 What if the "sovereign funds" operated by oil-rich countries and manufacturing/export countries, start buying up large chunks of our economy, as cash-desperate banks and companies look anywhere for aid? A drug addict sells away his household bit by bit, and gets into ever-increasing debt to get his next fix. We are selling our land and our future for our next fix of oil and imported goods, and to service the debt we have already built up.

you
Yahoo! Finance User - Thursday November 20, 2008 10:49AM EST

US investors won't or can't buy. How much that was the U.S. of A.s become some other countries? How much already has? What political influence will that buy? Any answers out there from you bloggers that post really great comments and ideas.

__A_YAHOO_USER__
__A_YAHOO_USER__ - Thursday November 20, 2008 11:01AM EST

I do not know the market trend now very unpredictable.......bullish but not and never be desperate , a loser too like anybody else. I just play but I admit, it is so hard....It is not a game of Luck.......Is anybody like me to try the market .............My advice is never try not unless you are adventurer........As I said,I try the wrong adventure......

you
Yahoo! Finance User - Thursday November 20, 2008 11:01AM EST

I'm going to buy Buffet's GE at $5.00.

ray
ray - Thursday November 20, 2008 11:16AM EST

Seems to me all our economic experts, both presidents, and Congress have got the cart before thr horse.The way to bail automobile manufactures, bank with foreclsed loans, and decresed sales in all sectors is to put people to work not by making money available to banks for loans.This is ridiculus. Vendor's require a job for a loan and they don't have them so they can't get a loan.If they spend the Billions on work projects in all the states to put people back to work, they could pay mortgages, buy cars and other items and result in a novel way to pay more taxes--- to the IRS ---plus stimulate the economy

Marston
Marston - Thursday November 20, 2008 11:26AM EST

Good money after Bad???? Is this a prudent thing to do as an investor??? Or., is Citibank going broke?????

Timmie
Timmie - Thursday November 20, 2008 11:53AM EST

I'm so glad that years ago I invested in solid blue chips like GE and GM. I am now secure in my retirement. (This asylum is very nice, too, and it costs me nothing. The nice man in the white coat brings me my meds everyday. Here he comes now!!!)

you
Yahoo! Finance User - Thursday November 20, 2008 12:42PM EST

WAKE UP AMERICA,We need to Quit dancing around the problem....It's just purely extravigant and foolish management practices from the top executives from almost all forms of the buissiness world as well as our government.It's time for a mega restructuring program from super salaries and bonuses right down to our military personel that have spouses and children and only make $1400/month

John
John - Thursday November 20, 2008 10:27PM EST

we are doomed

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