GE will sell its stake in Baker Hughes in the next 3 years

General Electric Co. GE,
+ 2.68%
said Wednesday, reporting the second quarter results, that it is launching a program to fully monetize its ownership position in oil services company Baker Hughes Co. BKR,
for about three years. GE revealed Wednesday that it owned 377.4 million Baker Hughes shares, which at Tuesday’s closing share price of $ 15.87 would be valued at $ 5.99 billion, and a promissory note. GE has recorded a gain of $ 1.85 billion on its Baker Hughes holdings for the three months ended June 30, but has recorded a loss of $ 3.87 billion for the six months ended June 30. GE said its monetization plan is designed to allow GE to sell its shares at a price that is roughly the volume-weighted average price of Baker Hughes shares over an extended period of time. The company said it expects to use the proceeds from the sale of shares to reduce debt. GE shares rose 1.7% in premarket trading after the company reported a second-quarter loss higher than expected, but revenue and free cash flow exceeded expectations. Shares fell 38.3% yoy through Tuesday, while Baker Hughes shares fell 38.1% and DIA Jones Industrial Average DJIA,
has lost 7.6%