I understand that if the GE/BHI partnership goes through, that GE will pay a one-time dividend of $17.50 for each share of BHI stock; however, I have yet to read, or perhaps understand, what happens to the BHI stock if the partnership goes through. I read that GE shares will see a likely increase of 4% and that GE will own 62.5% of the new partnership and the remaining 37.5% is own by whom? BHI? BHI Shareholders? What happens to the BHI stock in this new arrangement? (I know this isn’t a done deal until the Shareholders agree and that the DOJ and the European counterpart approve the deal in 2017.)
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if there are 423M shares of BHI, NewCo will be created with 1128M shares. The 423M shares of BHI will be exchanged 1:1 for 423M shares of NewCo + $17.50/share. GE will get 705M shares of NewCo.
For each share of BHI you own, you will get one share of the new Baker Hughes (a GE Company), ticker symbol yet to be determined, and $17.50.
The new ticker is going to be (IRU) Idiots R Us. You bunch of Schleprock's
The new entity will be listed on the stock market with a new ticker, BHI shareholders will be offered a number of shares (fractions) for each BHI share and the BHI ticker (and the company) will cease to exist.