GE in $50-bn share buyback, to sell bulk of realty biz

NEW YORK: General Electric Co on Friday said its board had authorised a share repurchase programme of up to $50 billion. The plan allows GE to buy back nearly 2 billion of its outstanding shares, based on Thursday’s close, when the stock rose 2%

The company, which has been refocusing on its industrial businesses, also said it would sell the bulk of its real estate portfolio to investors including Blackstone Group and Wells Fargo & Co for $26.5 billion. It is the biggest commercial real estate deal since Blackstone’s acquisition of office landlord Equity Office Properties Trust in 2007 for $39 billion, including debt.

“This is a major step in our strategy to focus GE around its competitive advantages,” chairman and CEO Jeff Immelt said.

GE has been selling off its property investments globally as it focuses on improving earnings from sales of products such as jet engines, generators, electric grid gear and oil field equipment.

“The business model for large, wholesale-funded financial companies has changed, making it increasingly difficult to generate acceptable returns going forward,” GE said in a statement.