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GE to lose majority control of Baker Hughes with up to US$3 billion share sale

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General Electric is looking to raise up to US$3 billion in sale of majority-owned Baker Hughes shares, resulting in a reduction of the U.S industrial conglomerate's stake in the oilfield services provider to less than 50per cent, Baker Hughes said on Tuesday.

A screen displays the logo for Baker Hughes on the floor at the New York Stock Exchange (NYSE) in New York, U.S., June 24, 2019. REUTERS/Brendan McDermid

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REUTERS: General Electric is looking to raise up to US$3 billion in sale of majority-owned Baker Hughes shares, resulting in a reduction of the U.S industrial conglomerate's stake in the oilfield services provider to less than 50per cent, Baker Hughes said on Tuesday.

Shares of Baker Hughes, in which GE owned an about 50.4per cent stake as of June 30, fell 3.7per cent to US$23.20 in after hours trading, while GE's were marginally up at US$9.15.

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GE had long planned to sell down its stake in Baker Hughes.

But the issue came under scrutiny last month when Madoff whistleblower Harry Markopolos issued a lengthy report that alleged in part that GE was improperly counting Baker Hughes' income, capital and cash in GE's financial statements.

GE has said its accounting was appropriate since it is the majority shareholder.

Baker Hughes said GE would sell up to 120.75 million shares, including over-allotment option, of Baker Hughes' Class A common in a secondary offering. Baker Hughes will additionally repurchase US$250 million of Class B common stock from GE in a private transaction.

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GE currently owns about 522 million shares of Baker Hughes, and has said previously that a reduction in its ownership in

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