Russ Krull

GE Dilution Questioned

BS Detector - You are correct, I need to get coffee before posting. GE gets $3 billion now from Buffett for the preferred, $3 billion from Buffett if and when he chooses to exercise the warrants and $12 billion from the secondary when it closes.

GE Dilution Questioned

Good question Gary.
Assuming this deal was insurance against the short term credit paper market locking up, time would have been a critical factor. The Buffett deal puts $3 billion in hand immediately and another $3 billion on tap from the warrants with a phone call to Omaha.