GE Drops Below $6 for First Time Since 1991, Denies Need to Raise Capital

[Purveyor]

By Edmond Lococo and Rachel Layne

March 4 (Bloomberg) -- General Electric Co. shares dropped below $6 for the first time since December 1991, plunging as much as 18 percent in its fourth straight day of declines on investor concerns its finance unit may require more capital.

GE fell 41 cents, or 5.8 percent, to $6.60 at 11:07 a.m. in New York Stock Exchange composite trading. Earlier the shares traded as low as $5.73.

The shares are being driven down by selling by sovereign wealth funds anticipating a downgrade of the company’s AAA credit rating, and that’s also pushing its credit-defaults swaps higher, Pacific Investment Management Co.’s Bill Gross said in an interview on CNBC.

“The market is beginning to anticipate a downgrade to double-A territory,” Gross said. “We believe even with the downgrade, it’s a viable, safe, liquid credit going forward.”

GE said in an e-mail to investors today that claims that it needs to raise capital soon are just speculation.

“Recently claims have been made that GE will be required to raise new capital near term,” GE said in the e-mail. “This is pure speculation, is inaccurate and is not based on any input from our company. In the unexpected event that GE Capital requires additional equity, we have a number of options to satisfy that need without seeking external capital. ”

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BLOOMBERG: http://www.bloomberg.com/apps/news?pid=20601103&sid=aiTFYBl4Jfo4&refer=us

[antigop]

1. So glad I dumped it years ago. n/t

[blueclown]

2. The best kept secret on Wall Street = that GE is bankrupt. n/t

[tammywammy]

3. GM and GE aren't the same company. n/t

[blueclown]

4. I meant GE.

Although I guess the point that can be made that point GE and GM are bankrupt, although it is much more obvious that GM is bankrupt than GE. As I said, GE's impending bankruptcy (IMO) is the best kept secret on Wall Street.

[louis-t]

5. GE needs another war.

That would straighten their books out.