GENERAL ELECTRIC STOCKS SKYROCKET AFTER DANAHER AGREES TO BUY BIOPHARMA BUSINESS
In the pre-market trading session, General Electric’s stock was trading at 11.65-higher by 14.55% as compared to the previous closing price.
GE stocks rose after Danaher announced earlier today that it will buy General Electric’s biopharmaceutical business in a $21.4 billion deal. According to the deal, Danaher will pay $21 billion in cash, as well as assume certain GE pension liabilities.
General Electric plans to use the proceeds to reduce leverage and strengthen the balance sheet. The company also expects the deal to close during the fourth quarter of this year. The biopharma business, part of GE’s life sciences unit, generated revenue of about $3 billion in 2018. The industrial conglomerate’s Life Sciences unit will join Danaher’s Life Science as a stand-alone business.
The U.S. industrial Conglomerate reported a lower-than-expected fourth-quarter profit in January. The company also said it would provide its 2019 outlook on a conference call on 14th March.
On the technical front, the current price is above the MA5 and the MA20. The current price is above the upper band of the Bollinger Bands and is heading upwards. The stock is expected to trade higher today.
TRADE SUGGESTION- STOP BUY AT 11.70 TAKE PROFIT AT 11.90 STOP LOSS AT 11.60