Meetings with employees at Lufkin Industries this morning have confirmed the rumors that Lufkin Industries will be selling to G.E.  According to a report in the New York Times, the price of the buy out will be around $3.3 billion. 

G.E. will end up paying $88.50 a share in cash.

The report goes on to say that the deal is expected to close in the 2nd half of the year.