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General Electric to Buy French Electrical Equipment Maker Converteam for $3.2 Billion (GE)
Multinational conglomerate General Electric Company ( GE ) on Tuesday unveiled plans for its latest acquisition.
The company said it plans to buy a 90% stake in French electrical equipment developer Converteam in a deal valued at $3.2 billion. Converteam specializes in high-efficiency electrical systems that help reduce greenhouse emissions and lower energy consumption.
GE said the acquisition would help it serve growing regions like Brazil, Russia, China, India and the Middle East. The deal is expected to close in the third quarter of 2011.
GE shares were mostly flat in premarket trading Tuesday.
The Bottom Line
We recently removed shares of General Electric ( GE ) from our recommended list, following the Japan nuclear disaster. GE has some of its revenue tied to the nuclear buildout and we'd like to see the situation stabilize a bit before feeling good about investors putting new capital in the shares. The stock has technical support in the $18 price area. If the shares can firm up, we see overhead resistance around the $21-$22 price levels.
General Electric Company ( GE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.