US conglomerate, General Electric plans to sell 38 million shares of insurance company Genworth's Class A Common Stock.
The company announced that the offering will take place on December 1, 2005 and that it will price the offering after the close of trading on that day. Following the sale GE’s stake in the insurer will have been reduced to 20%.
General Electric is timing the offer to meet anticipated investor demand following Standard & Poor’s announcement of its intention to add Genworth to its S&P 500 Index as of the close of trading on December 1, 2005.
GE also said that it will not offer additional Genworth shares in 2005 and expects to sell its remaining shares by the end of 2006 as part of its overarching strategy to exit the insurance sector.