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The letter from GE HR to retirees in the RSP was not clear at all. This transaction is good for GE shareholders, who gain equity in an organization at the forefront of rail innovation; for GE, as we work to reduce leverage and strengthen our balance sheet; and for Wabtec, which now has a stronger and more diversified business mix to serve its customers, said GE Chairman and CEO H. Lawrence Culp Jr. The GE and Wabtec teams worked hard to complete this deal, and I am excited by the opportunities ahead for Wabtec., Raymond T. Betler, Wabtecs president and CEO, said the deal was a once-in-a-lifetime opportunity to bring together nearly four centuries of collective experience to create a technologically advanced leader with a highly complementary set of capabilities to move and improve the world.. Any idea how much and when it will show up? GE Aerospace is a world-leading provider of jet engines, components and systems for commercial and military aircraft with a global service network to support these offerings. In other words, in future years, earnings should rebound strongly -- and, all things being equal, the EV/EBITDA multiple will decline. Example: Mary Smith is preferred instead of M Smith. Stock Information | Wabtec Corporation However, GE is pre-funding its pension plan to the tune of $6 billion in 2018 by borrowing the same amount. The company merged with GE Transportation on February 25, 2019. A culture of integrity, compliance, safety, and respect for human rights, while reducing our environmental footprint. Please select the GE business(es) of most interest to you: GE's Investor Relations website at www.ge.com/investor-relations and our corporate blog at ge.com/reports as well as GE's social media accounts, contain a significant amount of information about GE, including financial and other information for investors. IMPORTANT: You must be able to provide the name of the security, the certificate number(s), the name of the registered owner(s), and the number of shares in all communications. Begin typing your search term above and press enter to search. In some cases additional documents will be required to complete the transfer. What is the tax basis for the WAB shares received by GE holders? This combination will create a compelling offering to meet the industry's rapidly growing demand for rail performance, with the potential to unlock billions in annual savings across freight rail for customers and operators. I did review the discussion but it didn't help! DSPPs offer investors the opportunity to buy shares directly from the corporation, via the transfer agent, often without involving a broker. Drive increased value for shareholders: Investors are expected to benefit from ownership of a stronger, more diverse business better positioned to perform through the cycle, with expanded margins, expected average double-digit EPS growth and synergies of about $250 million. Has anyone found a cite for that? Meanwhile, the structure of the deal is a nice way to return capital to GE shareholders. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Payment months are February, May, August, November. What's more, the deal has been structured in a tax-efficient manner. You can also buy GE stock through brokerage firms that act as a facilitator between individual investors and GE. I typically enter the cash-in-lieu transaction as a sell and consider the small capital gain as taxable. This registration gives sole ownership to the single individual and requires that the person's legal name be used. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Betler said: Wabtec and GE Transportation are global industry leaders and we believe that together we have a unique opportunity to drive tremendous growth in 2019 and beyond as the industry continues to improve. For example, GE Transportation is expected to deliver around 300 locomotives in 2018; that compares with an average of around 670 over the last decade. Together, we can expand our global reach, strengthen our market capabilities and lead digital innovation across the transportation industry. What is the per share cost basis for the partial share? At GE, we rise to the challenge of building a world that works. Include any additional instructions indicating how you wish the shares to be transferred. That means a shareholder with 10,000 GE shares will walk away with only 54 shares of WAB along with a little cash. To make the world smarter, happier, and richer. We recommend that all certificates be sent by registered mail, return receipt requested. $1.1 billion of net tax benefit will accrue to the combined company. Sell any fractional share for whatever cash-in-lieu amount received. With best-in-class manufacturing facilities, unmatched digital expertise, always-on global services delivery, and unrivaled product breadth and performance, Wabtec is the rail industrys one-stop shop. On July 27, 2015, Wabtec announced that it plans to purchase 51% of Faiveley Transport's shares in a cash-and-stock deal valued . Normally a corporation will have documentation on their website with a basic formulas to calculate the subsequent tax basis. Morgan Stanley & Co. LLC and Dyal Co. LLC are acting as financial advisors, and Davis Polk & Wardwell LLP as legal advisors, to GE in the transaction. I end up with 27 million+ shares of Wabtec which obviously isn't correct! The transaction is expected to be tax free to the companies' respective shareholders. Transfer shares to your broker via the transfer process (see FAQ "Ownership Questions"). I have read everything here and see that $73.96 per share is used to record the buying of the Wabtec shares and that is the closing price on Feb 26, 2019. 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. Following the completion of the transaction, Stphane Rambaud-Measson will become president and CEO of Wabtecs Transit Segment; and Rafael Santana, president and CEO of GE Transportation, will become president and CEO of Wabtecs Freight Segment. Note that this is different from having your signature notarized. WAB ranks lowest in Sentiment; there it ranks in the 29th percentile. Read GEs 2022 Proxy Statement, vote your shares and access the 2022 Annual Meeting. The strategic combination of complementary portfolios is expected to: Create a leading equipment, aftermarket services and digital solutions provider across the transportation sector: The company can accelerate lifecycle solutions for the transportation industry and unlock significant productivity for customers by improving interoperability, efficiency and competitiveness. Multiply your number of GE shares on 2/25/19 by 0.005371. Tim Wesley, Wabtectwesley [at] wabtec [dot] com You can also listen to the webcast by going to Wabtecs new website at www.WabtecCorp.com and clicking on Events & Presentations in the Investor Relations section. Learn More. Through its subsidiaries, the company manufactures a range of products for locomotives, freight cars and passenger transit vehicles. Ithas also expanded heavily into software and thelucrative business of locomotive upgrades. Together with our customers, were proving that no one is ever limited to only affordable, reliable, or sustainable energy. On December 2, 2015, as part of the GE Debt Assumption and as a result of the Merger, GE succeeded to GECC and assumed the obligations of GECC under all of GECC's outstanding indebtedness and other financial obligations, including: Commercial paper is short-term unsecured senior debt issued in the open market by both financial and nonfinancial companies with strong credit ratings. This will offer shareholders a chance to sell their GE shares but retain their Wabtec interests or alternatively sell their Wabtec interest and retain their GE shares. Specifically, GE Transportation will be first distributed to GE shareholders in a "tax-free spin- or split-off; then immediately merged with Wabtec," according to the deal presentation.. Disclosure: Author holds no position in any stock mentioned. To exchange your physical GE share certificates for a statement of holdings in book-entry form, please contact GE's transfer agent, Equiniti Trust Company, to begin the process. GE's innovation engine where ideas become reality to create a better world and deliver differentiated tech across the company's industrial portfolio. Wabtec is currently in the S&P Midcap 400 index, but its current pre-merger market cap is already above many S&P 500 constituents. When adjusted for the net tax step-up value of $1.1 billion accruing to the combined company, the transaction value is $10 billion. An overhaul can lower the amount of fuel the locomotives need by 10 percent, increase reliability by 40 percent and boost their ability to haul cargo by 50 percent. DSPP Some companies offer DSPPs, so please visit your online account to determine if a plan is available to you. Both companies are expected to benefit from the cyclical tailwinds they are experiencing as industry conditions improve. Wabtec Corporation is a leading global provider of equipment, systems, digital solutions and value-added services for freight and transit rail. Securities and Exchange Commission (SEC) regulations define the financial institutions that are eligible to provide such signature guarantees, e.g., commercial banks, brokers, credit unions, savings and loan institution. Due to low participation, GE ended the Stock Redemption program on November 10, 2016 for GE Stock Direct Investors. Wabtec brings to market a robust installed base of more than 23,000 locomotives globally, an expanded global reach, a strong mix of products and services, as well as enhanced capabilities to drive innovation faster in key growth areas. I expect 25 shares of the Wabtec stock based on my shares of GE, but I dont know when I will get them and how will they come to me. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) that one or more closing conditions to the transaction, including certain regulatory approvals, may not be satisfied or waived, on a timely basis or otherwise, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the proposed transaction, may require conditions, limitations or restrictions in connection with such approvals or that the required approval by the stockholders of Wabtec may not be obtained; (2) the risk that the proposed transaction may not be completed on the terms or in the time frame expected by GE or Wabtec, or at all; (3) unexpected costs, charges or expenses resulting from the proposed transaction; (4) uncertainty of the expected financial performance of the combined company following completion of the proposed transaction; (5) failure to realize the anticipated benefits of the proposed transaction, including as a result of delay in completing the proposed transaction or integrating the businesses of GE, Wabtec and SpinCo; (6) the ability of the combined company to implement its business strategy; (7) difficulties and delays in achieving revenue and cost synergies of the combined company; (8) inability to retain and hire key personnel; (9) the occurrence of any event that could give rise to termination of the proposed transaction; (10) the risk that stockholder litigation in connection with the proposed transaction or other settlements or investigations may affect the timing or occurrence of the proposed transaction or result in significant costs of defense, indemnification and liability; (11) evolving legal, regulatory and tax regimes; (12) changes in general economic and/or industry specific conditions; (13) actions by third parties, including government agencies; and (14) other risk factors as detailed from time to time in GEs and Wabtecs reports filed with the SEC, including GEs and Wabtecs annual report on Form 10-K, periodic quarterly reports on Form 10-Q, periodic current reports on Form 8-K and other documents filed with the SEC.