We’re continuing to do all we can to support our customers and employees during this unprecedented time. The terms of the spin-off was 0.005371 of Wabtec for each share of GE (1 Wabtec share for each approximately 186 GE shares) with a cash-in-lieu rate of $74.6834 for fractional shares. Although this figure is lower than the 5% many analysts assume for mergers, there are a couple of things to consider that suggest Wabtec is onto a good thing.Second, it's worth noting that Wabtec is merging with GE Transportation at a cyclical low point. As you can see below, existing shareholders will be rewarded with stock, as well as future cash flow and dividends from the new Wabtec.
COVID-19 GE is supporting the fight against COVID-19. In a sense, GE is covering its 2018 dividend by borrowing money and relying on asset sales. Stated another way, for each approximately 186 shares of GE common stock held, a GE shareholder will receive one share of Wabtec common stock.Answers to popular and relevant inquiries.Jennifer Erickson, 646.682.5620Find yourself a world changing job.BOSTON - February 25, 2019 - GE (NYSE: GE) announced today the completion of the spin-off and subsequent merger of its transportation business with Wabtec Corporation (NYSE:WAB).GE Chairman and CEO H. Lawrence Culp, Jr., said, “Today’s update is another important landmark in executing GE’s portfolio strategy.
Let's start by breaking out who will own what after the merger. “Fuel is the second largest operating cost for our customers, with North American Class 1 rai It's too early to tell right now, but what's undeniable is that the GE-Wabtec deal marks progress on GE management's strategic aims, and that can't be seen as anything but a plus.An analyst with a glass-half-full approach would see the deal as progress on GE's restructuring plans and note that the cash flow will give the company more leeway to restructure the power segment before a bounce-back in total FCF generation in 2019. Explore a career with us.GE's dedicated team, leading technology, and global reach and capabilities help the world work more efficiently, reliably, and safely.Offering a suite of products to help unlock the full potential of additive manufacturing.Transforming how industry solves its toughest challenges by bringing simplicity, speed and scale to digital transformation.Learn about governance at GE, including the latest Proxy Statement and information about the GE Board of Directors.By embracing diverse teams and perspectives, we are better equipped to build a world that works.Together with our customers, we’re proving that no one is ever limited to only affordable, reliable, or sustainable energy.Explore a timeline of GE technologies that have spurred transformation across the world.Read the latest GE financial news releases and stories.Access the latest press releases, media contacts, and press tools.The exchange ratio for the combined Spin-off/merger transaction is 0.005371, meaning participating GE shareholders will receive 0.005371 shares of Wabtec common stock for each outstanding share of GE common stock held. Aside from the tax benefit, the merged company is expected to generate $250 million in run-rate synergies by the fourth year after the deal, or around 3.2% of the combined 2017 revenue of GE Transportation and Wabtec. In short, GE needs cash, and many investors may have preferred a deal with a higher cash component rather than the one outlined above.An analyst with a more pessimistic approach would worry about continued deterioration in the power segment and therefore see the cash from Wabtec as small potatoes compared to what GE could need to realize its restructuring plans while maintaining its current dividend.Stock Advisor launched in February of 2002. Returns as of 07/31/2020.What's more, the deal has been structured in a tax-efficient manner.