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GE Transportation - Wabtec merger


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#1 jis

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Posted 21 May 2018 - 09:15 AM

GE is divesting its Transportation unit, which is responsible for all of GE's rail related products and merging it with Wabtec to form an $8 billion per year revenue company, which will be a Forture 500 company GE will retain 51% ownership of the new Wabtec.

 

http://www.getranspo...es-and-software



#2 railiner

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Posted 21 May 2018 - 06:37 PM

Interesting...I dont suppose their jet aircraft engine division is a part of their transportation division?
They mention marine products, so Im guessing that their marine gas turbines are included?
Not sure from that press release...
metroblue?

okay on the blue!

#3 jis

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Posted 21 May 2018 - 08:12 PM

Interesting...I dont suppose their jet aircraft engine division is a part of their transportation division?
They mention marine products, so Im guessing that their marine gas turbines are included?
Not sure from that press release...

No aircraft stuff has not been a part of Transportation at GE. The current GE Transportation BU is going to be divested pretty much in toto and merged into Wabtec. GE will own 51% of the merged company.



#4 Just-Thinking-51

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Posted 22 May 2018 - 06:17 AM

So if you own 51% of the new company. Then you really have not sold off your railroad division. You just actually just made it larger. Seem that 51% ownership was not part of the headline of this divesting that cause the stock of GE to go up.

#5 jis

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Posted 22 May 2018 - 06:23 AM

It was part of the financial disclosure. Hopefully people who buy and sell stocks do read financial statements. A man on the street who lives by headlines may not.



#6 keelhauled

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Posted 22 May 2018 - 07:43 AM

My layman's understanding was that GE and GE shareholders would together own 51% of the new company, with Wabtec shareholders the balance, but no group would have a majority stake.

Edit: for Wall Street Journal subscribers the article is here. Relevant quotes:
 

"GE shareholders will own 40.2% of the combined company, with GE owning about 9.9% after the deal, the companies said Monday. GE is required to sell its stake in the combined company within three years.

Wabtec shareholders will retain 49.9% of the combined company."


Edited by keelhauled, 22 May 2018 - 07:46 AM.

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We are stuck with technology when what we really want is just stuff that works.


#7 jis

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Posted 22 May 2018 - 08:02 AM

 

My layman's understanding was that GE and GE shareholders would together own 51% of the new company, with Wabtec shareholders the balance, but no group would have a majority stake.

Edit: for Wall Street Journal subscribers the article is here. Relevant quotes:
 

"GE shareholders will own 40.2% of the combined company, with GE owning about 9.9% after the deal, the companies said Monday. GE is required to sell its stake in the combined company within three years.

Wabtec shareholders will retain 49.9% of the combined company."

 

Your understanding is correct. I apologize for mis-stating.


Edited by jis, 22 May 2018 - 08:03 AM.

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