GE Shares Drop Below $6 for First Time Since 1991 (Correct)
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By Edmond Lococo
(Corrects to remove reference to 1980 in second paragraph.)
March 4 (Bloomberg) --
General Electric Co. shares dropped below $6 for the first time since December 1991, plunging as much as 18 percent in its fourth straight day of declines on investor concerns its finance unit may require more capital.
GE fell 94 cents, or 13 percent, to $6.07 at 10:28 a.m. in New York Stock Exchange composite
trading. Earlier the shares traded as low as $5.73.
The shares are being driven down by selling by sovereign wealth funds anticipating a downgrade of the company’s AAA credit rating, Pacific Investment Management Co.’s
Bill Gross said in an interview on CNBC. The company said in an e-mail to investors today that claims that it needs to raise capital in the near term are “pure speculation.”
GE cut its dividend Feb. 27 for the first time since 1938 to save $9 billion a year. That may not stave off
debt-rating downgrades and the company may have to put more money into GE Capital, analysts including
Jason Feldman of UBS AG and
Nicholas Heymann of Sterne Agee & Leach Inc. said in notes to clients yesterday.
The company’s shares dropped 79 percent in the past year before today as the recession and credit crisis eroded profit at GE Capital and undermined the value of real estate on its books.
To contact the reporter on this story: Edmond Lococo in Boston at
[email protected].
Loro dicono che GeCap non è da ricapitalizzare, ma il mercato non sembra crederci. Chi avra ragione?
però il paragone mi sembra un minimo azzardato.
tlx 98,55
