General Electric has announced plans to raise $5bn (£3.09bn) to pay off short term debt that was issued to finance a contribution to its insurance businesses.

The company took a $1.5bn (£927m) charge in the fourth quarter of 2002 to boost reserves in its employers reinsurance unit, which faced larger-than-expected claims from aesbstos litigation.

The company said the $5bn (£3.09bn) transaction would be managed by US banks Lehman Brothers, Morgan Stanley and Salomon Smith Barney.

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