General Electric Company (NYSE:GE) announced the final results of its completed offer to exchange GE common stock for common stock of Synchrony Financial (NYSE: SYF) previously owned by GE, which expired at 12:00 midnight, New York City time, on November 16, 2015.
Because the exchange offer was oversubscribed, GE accepted only a portion of the shares of its common stock that were validly tendered and not validly withdrawn, on a pro rata basis in proportion to the number of shares tendered. All shares validly tendered and not validly withdrawn by eligible odd-lot shareholders who requested not to be subject to proration have been accepted. The final proration factor of 31.2870888% was applied to all other shares of GE common stock that were validly tendered and not validly withdrawn to determine the number of such shares that have been accepted from each tendering shareholder.
Based on the final count by the exchange agent, Computershare Trust Company, N.A., the final results of the exchange offer are as follows:
- 31.2870888% of the tendered shares of GE common stock subject to proration exchanged
- Shares tendered that were subject to proration: 2,143,371,163
- Odd-lot shares tendered that were not subject to proration: 768,324
- Total number of shares of GE common stock accepted: 671,366,809
- The exchange agent is expected to deliver shares of Synchrony common stock as follows: (1) with respect to shares tendered through the Depository Trust Company (DTC), to the account of DTC on Monday, November 23, 2015, and (2) with respect to shares tendered outside DTC, to the direct registered accounts of the respective holders by November 30, 2015. The exchange agent will mail checks in lieu of fractional shares of Synchrony common stock to tendering holders with fractional interests after the exchange agent has aggregated all fractional shares and sold them in the open market. Shares of GE common stock tendered but not accepted for exchange will be returned to tendering shareholders in book-entry form. (Original Source)
Shares of General Electric closed yesterday at $30.27. GE has a 1-year high of $30.90 and a 1-year low of $19.37. The stock’s 50-day moving average is $28.95 and its 200-day moving average is $26.72.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on November 16, Deutsche Bank analyst John G. Inch maintained a Hold rating on GE, with a price target of $28, which implies a downside of 7.5% from current levels. Separately, on November 11, William Blair’s Nicholas Heymann maintained a Buy rating on the stock and has a price target of $32.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, John G. Inch and Nicholas Heymann have a total average return of 12.5% and 3.9% respectively. Inch has a success rate of 80.0% and is ranked #577 out of 3857 analysts, while Heymann has a success rate of 53.8% and is ranked #1779.
The street is mostly Bullish on GE stock. Out of 9 analysts who cover the stock, 7 suggest a Buy rating and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $31.25, which represents a slight upside potential from current levels.