General Electric (NYSE:GE) shares are trading to the upside today after the conglomerate said it will buy Berkshire Hathaway's (BRK.a, BRK.b) preferred shares in the company.
GE will redeem the shares for $3.3 billion, plus unpaid dividends, on October 17. The buyback price includes a 10% redemption premium.
Warren Buffett's Berkshire made the investment in GE in 2008 to give the company a boost in the midst of the financial crisis.
Around the same time, Berkshire also invested in Goldman Sachs (NYSE:GS), which has also redeemed Berkshire's shares. Berkshire recently took a stake in Bank of America (NYSE:BAC).
Media reports calculate Buffett's company will have made $1.2 billion in the GE deal.
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