On Drudge now (which headline links to this thread's article)
BILLIONS AND BILLIONS: GE to Buy Back Shares From Buffett...
Posted on 09/13/2011 5:20:04 PM PDT by STARWISE
*snip*
General Electric [GE 15.41 0.40 (+2.66%) ^ 0.40 (+2.66%) ] officially notified Berkshire Hathaway [BRK.A 103460.00 -340.00 (-0.33%) ] on Tuesday it intends next month to repurchase the $3 billion of preferred stock it sold him in October 2008.
GE has flagged the move for a while. Under terms of the deal it struck with Buffett when all hell was breaking loose, the company led by Jeff Immelt was obliged to wait three years to call the bonds. It also needed to give at least 30 days notice—hence this week's letter from Fairfield, Connecticut, to Omaha.
Buffett's money doesn't come cheap, so it's logical that GE, like Goldman Sachs [GS 104.09 1.17 (+1.14%) ] before it, would seek to exit the deal as soon as possible.
(Excerpt) Read more at cnbc.com ...
On Drudge now (which headline links to this thread's article)
BILLIONS AND BILLIONS: GE to Buy Back Shares From Buffett...
>>> Ping!
Of course, Buffett will donate the proceeds to pay down the national debt because he frets so much about how little he pays in taxes. /s
This is unearned income for the one of the richest men in the world. He should have to pay it all to the government as taxes. Other people deserve the money more than he does. And the kicker is he’s on record as saying he should pay more taxes.
Nice little arrangement. Make billions with no risk!!!!
GE’s market value under Immelt = America’s market value under Obama
Crony capitalism a trois?
Funny how GE still doesn’t have to pay any income taxes!!!!!
What price per share did Buffett pay for GE in 2008? If GE is buying back it’s own stock at $15 or so a share then they won’t’ be able to buy enough shares from Buffett to make up the original 3Bill.
What the hell is this? They buy the stock and then make up the rest in cash to Buffett? This is plain appalling. If Buffett sells to them at a loss (which he will) he gets to take the loss vs any other gains on his taxes. GE gets to write off their buy back. Neither one of these jokers pays real taxes. This is some kind of cr*p. Net result to BOTH is NO TAX exposure, from the very people who say we need to pay more taxes. And Buffett owes over a billion in back taxes, so what about that?
“Roughly speaking, I think it’s accurate to say that a corporate elite of managers and owners governs the economy and the political system as well, at least in very large measure. The people, so-called, do exercise an occasional choice among those who Marx once called “the rival factions and adventurers of the ruling class.” Lord help me, this is a quote from communist Noam Chomsky. Tell me this isn’t what is going on.
Warren Buffett invests $3 billion in GE
Berkshire Hathaway buys preferred shares, plans to sell common stock
((Msnbc.com is a joint venture of Microsoft and NBC Universal. The latter is a subsidiary of GE.))
*snip*
Berkshire, based in Omaha, Neb., is buying $3 billion of preferred shares of GE, which carry a 10 percent dividend. The terms are similar to those Buffett struck with Goldman Sachs. Berkshire also has the option to buy $3 billion worth of GE common shares for $22.25 each at any time over five years. GE’s shares closed at $24.50 Wednesday.
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