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GENERAL ELECTRIC GIVES UP RCA STOCK
The directors of the General Electric Co. at a special meeting voted to distribute one share of the Radio Corporation of America for every six shares of General Electric common stock held. The distribution will be made on Feb. 20, 1933, to stockholders of record of Dec. 16. Scrip will be issued for fractional shares.
This action is in accordance with the decree entered in the Federal Court in Wilmington, Del. on Nov. 21, which ordered General Electric to distribute about one-half of its holdings in the Radio Corporation within three months and the balance within three years.
Inasmuch as there are 28,845,927 shares of General Electric common stock outstanding, 4,807,654^ shares of Radio common stock will be distributed to 178,580 holders of General Electric shares. This will leave 381,100 shares of Radio common and 27,080 shares of the corporation’s Class A preferred stock in General Electric’s treasury.
At Friday’s closing price of 5-J for Radio common shares, the total distribution by General Electric amounts to $26,442,100.
The return of $5.50 to the holder of six General Electric shares, valued at $94.50 on the basis of Friday's closing at 15-J a share, amounts to 5.82 per cent. Inasmuch as the average holding of General Electric stock is 161-g shares by each stockholder, the average distribution will be 26.92 shares of Radio stock, worth about $148 at Friday’s closing prices.
Directors of Westinghouse Electric and Manufacturing Co. may take similar action at their next meeting this month, including preferred as well as common shareholders on an equal basis in the distribution. Westinghouse owns 2,842,950 common and 50,000 Class A preferred shares of the Radio Corporation, and has 2,586,181 common and 79,974 preferred shares of its own outstanding.
A distribution of one Radio common share for each Westinghouse common and preferred share is possible in this case, however. Westinghouse is affected by the same obligations to dispose of its holdings as General Electric. A one-for-one distribution would leave Westinghouse with 176,795 common and 50,000 Class A preferred shares of the Radio Corporation.
The action of General Electric directors, known during market hours, had a favorable effect on General Electric and Westinghouse shares, and Radio stock closedl/8 lower after fairly active fluctuations. Moving between 5-g and 5, the stock closed at 5-5 following transactions of 13,900 shares. General Electric moved between 14-5/8 and 16, closing at 15-J, up 5/8 point, after a turnover of 21,100 shares. Westinghouse ended at 28, up -J, after moving between 28-3/8 and 26-3/8, with the trading amounting to 10,600 shares.
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