FAIRFIELD, Conn.--(BUSINESS WIRE)--GE (NYSE: GE) today announced the sale of its holdings of Swiss Re Common Shares and reaffirmed its first quarter and full-year 2007 earnings per share (EPS) outlook.
"We are very pleased to complete the sale of our Swiss Re Common Shares," GE Chairman and CEO Jeff Immelt said. "Swiss Re's stock has performed well, and we have gained significant value in our equity holdings."
Terms of the sale include GE selling 16.65 million shares of common stock at a price of 104 Swiss francs per share. Concurrently, with the closing of the offering, Swiss Re also will repurchase 16.65 million shares of common stock directly from GE for 1.71 billion Swiss francs. The repurchase will close simultaneously with, and be contingent upon, the closing of the book building transaction.
Upon completion of these transactions, GE will no longer own any shares of Swiss Re's common stock and will receive proceeds of $2.8 billion, resulting in a $565 million pre-tax gain. The gain will be used for restructuring and a separate charge from a recent asbestos-related legal decision.
"As previously communicated, our 2007 focus is on generating high-quality earnings and using gains for restructuring," Immelt said. "GE is off to a strong start for the year. We are confident in our ability to meet our EPS guidance of $.43-.45 for the quarter, up 8-13%, and $2.18-2.23 for the year, up 10-12%."
This announcement is not an offer of securities for sale nor the solicitation of an offer to purchase securities in the United States. These securities have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the U.S. absent registration or an applicable exemption from registration.
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
Contacts
General Electric, Fairfield
Russell Wilkerson, 203-373-3193 (office);
203-581-2114 (mobile)
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