New York - Reeling under the weight of the US credit crunch, the giant conglomerate General Electric (GE) is seeking a massive injection of capital through 12 billion dollars in new stock issuance and 3 billion dollars from legendary investor Warren Buffett, the company said Wednesday.

Buffett already rode to the rescue of financial giant Goldman Sachs last week by plunking down 5 billion dollars for a stake in the Wall Street firm, through his holding company Berkshire Hathaway.

GE said that Buffett's stake was guaranteed dividends of 10 per cent. Buffett also acquired an option to buy another 3 billion dollars in stock over the coming five years.

"GE is the symbol of American business to the world. I have been a friend and admirer of GE and its leaders for decades ... I am confident that GE will continue to be successful in the years to come," Buffet said.

In the midst of ongoing financial turmoil in the US and world credit markets, GE last week warned of sinking profits from the crisis.

GE shares have shed more than 30 per cent of their value in the current year.

"The economic environment remains volatile," GE CEO Jeff Immelt said Wednesday.

However, the companys performance remains on track with the earnings guidance we provided last week for 2008, including third quarter financial services earnings of approximately 2 billion dollars and industrial earnings growth of between 10 and 15 percent, excluding our consumer and industrial business," he said.

Buffett, ranked by Forbes magazine as the world's wealthiest man, raised hopes on Wall Street last week with his announcement that he would buy into Goldman Sachs. The bank stopped being an investment bank and converted to a normal bank holding company nearly two weeks ago to obtain greater access to loans from the US Federal Reserve.

The conversion placed Goldman Sachs under greater government scrutiny.

Buffett's investments are closely watched on Wall Street and by small investors. (dpa)