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Baker Hughes's stock slumps after offering of GE-owned shares prices at 3.4% discount

Tomi Kilgore

Shares of Baker Hughes, a GE Co. slumped 1.9% in premarket trade Wednesday, after the oilfield products company revealed the pricing of the secondary offering of common stock. The company said public offering of 92 million Class A shares owned by General Electric Co. were priced at $23 a share, which was 3.4% below Tuesday's closing price of $23.80, representing a value of $2.12 billion. If the underwriters exercise all the options granted to underwriters to buy an additional 9.2 million shares, the total value of the offering could reach $2.33 billion. The offering is expected to close on Nov. 16. GE's stock rose 0.6% ahead of the open. Over the past three months, Baker Hughes' stock has tumbled 30.3% through Tuesday and GE shares have dropped 30.8%, while the S&P 500 has slipped 3.5%.