GE Capital invests US$5.3 bln to acquire Heller Financial

GE Capital announced that it would invest US$5.3 bln to acquire the Chicago-based Heller Financial in a hope to expand its corporate loan business. The acquisition offer was US$53.37 per share, 50% premium over the closing price of Heller Financial last Friday and 15.4 times of the 2000 price/earnings ratio forecast of Heller Financial. It is the third time that GE put forward the acquisition of financial institution this year following CIT and Finova Group. GE ended down US$1.05 to US$43.6 while Heller Financial gained US$17.09 to close at US$52.99.

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