Will Buffett rescue GE?

By IndustrialsFOXBusiness

Nardelli: Would do anything to help GE

Former Home Depot and Chrysler CEO Bob Nardelli who left GE after losing a succession battle on whether he will return amid its current management turmoil.

General Electric’s (GE) shares jumped by the most in three-years on Tuesday amid a rumor that Warren Buffett could take a stake in the ailing industrial conglomerate.

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TickerSecurityLastChange%Chg
GEGENERAL ELECTRIC COMPANY14.05-0.63-4.29%

As reported by Bloomberg, an analyst at William Blair & Co. said the sudden increase in GE’s share price on Monday is due to chatter that that Buffett is interested in a position in the company.

“It may be a plausible theory, given Buffett had recently spoken to the press that he might be interested in GE at the right price,” Nicholas Heymann said in a telephone interview with Bloomberg.

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Buffett has previously stated that he would be interested in GE or its assets for the right price. If it ends up being true, it won’t be the first time that Buffett has invested in the company. He helped inject capital into the company during the financial crisis, but in February he noted that his Berkshire Hathaway had mostly sold its GE stock. The latest 13f filing for Berkshire Hathaway shows no new positions in GE.

GE’s share were climbing on Tuesday, but the stock’s value still reflects the financial struggles the company has been facing. Year-to-date shares are down almost 22% while over the past 12 months they have declined by almost 54%.