Oct. 2 (Bloomberg) -- General Electric Co. may sell stock at a discount of as much as 9.2 percent to yesterday's closing price as the company seeks to raise $12 billion from investors to help fund its operations, according to two people with direct knowledge of the sale.

Fairfield, Connecticut-based GE's shares slid 7.1 percent to $22.75 at 8:21 a.m. in New York after closing at $24.50 yesterday. The offering, still ongoing, may be priced between $22.25 and $22.50, said the two people, who declined to be identified before the company makes a statement.

GE said yesterday it will sell $12 billion in common stock and that Warren Buffett's Berkshire Hathaway Inc., in a separate deal, will buy $3 billion in preferred shares as Chief Executive Officer Jeffrey Immelt gathers more cash to fund operations amid the worst U.S. financial crisis since the Great Depression.

Goldman, Sachs & Co. will manage the sale to investors, GE said yesterday. The company said it also expects Bank of America Corp., Citigroup Inc., Deutsche Bank AG, JPMorgan Chase & Co. and Morgan Stanley will be additional bookrunners.

GE spokesman Russell Wilkerson didn't immediately reply to a message left on his mobile phone. London-based spokespeople for Goldman weren't immediately available to comment.

Buffett's preferred shares will pay an annual 10 percent dividend and are callable after three years at a 10 percent premium. GE's stock through yesterday tumbled 34 percent in New York trading this year.

GE and Immelt, 52, told investors as recently as Sept. 25 there was no need for outside capital, including selling a large equity stake to an outside entity. Immelt that day reduced his annual profit forecast for the second time this year. He also suspended a $15 billion buyback program, shifting capital to protect GE's dividend and AAA credit rating as volatility in credit markets reduced profit at its finance arm, GE Capital.

To contact the reporters on this story: Sarah Thompson in London at sthompson17@bloomberg.net; Alexis Xydias in London at axydias@bloomberg.net.

Last Updated: October 2, 2008 08:27 EDT