Furthermore, the deal structure should accrue a net tax benefit of $1.1 billion to Wabtec.Stock Advisor launched in February of 2002. Wabtec's (WAB) deal with GE Transportation, expected to close early next year, should significantly expand product portfolio of the former. In February 2019, Wabtec and GE Transportation merged. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. why did i receive shares of wabtec and a check from wabtec? However, GE is pre-funding its pension plan to the tune of $6 billion in 2018 by borrowing the same amount. Why Wabtec Shares Fell Nearly 16% in May Fears that a slowdown in the economy would hurt rail traffic are the last thing Wabtec needs as it integrates a major acquisition. If you're an indirect shareholder, please contact your broker with questions about your investment.Beneficial shareholders would need to contact their broker.If you hold your stock through a broker, you are an indirect shareholder. As you can see below, existing shareholders will be rewarded with stock, as well as future cash flow and dividends from the new Wabtec. The CUSIP number is 929740108. Earnings Estimates Moving Up: Annual estimates for Wabtec moved north over the past three months, reflecting analysts' confidence on the stock. In short, GE needs cash, and many investors may have preferred a deal with a higher cash component rather than the one outlined above.Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.Wabtec's management certainly thinks it got a great deal. Returns as of 07/31/2020.Data source: Wabtec presentations.As it stands, GE expects $6 billion to $7 billion in industrial FCF in 2018, which is intended to fund a $4.2 billion dividend payment. Earnings Estimates Moving Up: Annual estimates for Wabtec moved north over the past three months, reflecting analysts' confidence on the stock.
Image source: Getty Images.What's more, the deal has been structured in a tax-efficient manner. The details behind the deal suggest it's good news for GE shareholders -- it but won't convince the bears watching the stock. KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTSINDUSTRY KEYWORD: TECHNOLOGY SOFTWARE TRANSPORT OTHER TRANSPORT TRAVEL TRANSPORTATION MANUFACTURING ENGINEERINGBOSTON--(BUSINESS WIRE)--Feb 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).PUB: 02/25/2019 08:55 AM/DISC: 02/25/2019 08:55 AMUnder the previously disclosed terms of the transaction, GE distributed all 8.7 billion shares of common stock of Transportation Systems Holdings Inc. (“SpinCo”) with respect to the shares of GE common stock outstanding as of the close of business on February 14, 2019 by means of a pro rata distribution (the “Spin-off”), and SpinCo and a subsidiary of Wabtec then merged.http://www.businesswire.com/news/home/20190225005588/enThe 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.