General Electric has revealed its plans to raise at least $15 billion in capital through stock sales to Warren Buffett's Berkshire Hathaway and the public.

According to the terms of the 5-year deal, Buffett's investment vehicle Berkshire Hathaway will buy $3 billion of GE's preferred stock at a guaranteed 10-per cent dividend that are callable by 2011. 

In addition, GE will also sell $3 billion in preferred shares to Berkshire, which will also receive warrants to buy another $3 billion in common stock at $22.25 within five years i.e. anytime till year 2013.

Apart from this, GE will also sell $12 billion in common shares to investors, making the diversified industrial group the latest company to be forced to raise capital, during a time of financial market turmoil.

According to market experts, the fund raising was required to encourage investor confidence in the company, as GE Capital, its finance arm that yields nearly half of GE's revenues, had vanished 42% in stock value since last year that had left investors distressed, making this infusion look close to a bail out.
At 10:02 AM, GE’s shares were quoting at US$ 22.24, down $ 2.24, or 9%. It has touched an intraday high and low of $ 22.89 and low of $ 22.21 respectively.