Movers: GE, ImClone Systems, Ford, AIG, Boston Scientific
General Electric (GE) shares were down 7% after after Deutsche Bank cut GE EPS estimates and target. Deutsche Bank says adjustments largely reflect deterioration at GE Capital - driven by tighter credit markets, asset shrinkage and debt pay-down. But the stock recovered a little on news that GE plans to sell $3 billion of perpetual preferred stock in a private offering to Warren Buffett's Berkshire Hathaway (BRKA).The perpetual preferred stock has a dividend of 10% and is callable after three years at a 10% premium. In conjunction with this offering, Berkshire Hathaway will also receive warrants to purchase $3 billion of common stock with a strike price of $22.25 per share, which is exercisable at any time for a five-year term. GE also announces plans to offer at least $12 billion of common stock to the public.
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