Webtec Files Proxy Statement for Proposed GE Deal
September 17 2018 - 9:08AM
Dow Jones News
Wabtec Corp. (WAB) on Monday reiterated its strategic and
financial reasons behind its deal to combine with GE
Transportation.
General Electric Co. (GE) agreed in May to merge its railroad
business with Wabtec in a deal valued at roughly $11 billion.
Wabtec on Monday filed an amended preliminary proxy statement
with the Securities and Exchange Commission for the GE
Transportation deal.
The railroad-equipment company said it sees the deal closing by
the first quarter of 2019.
Wabtec reiterated it expects to have approximately $8 billion in
revenue, a more diversified business mix and higher margins.
The amended preliminary proxy statement includes an adjustment
to harmonize GE Transportation's historical financial information
with Wabtec's revenue recognition accounting policies to prepare
required pro forma financial statements. This is expected to result
in a $63 million decrease in forecasted combined consolidated net
revenue and EBIT in 2019, with no material effect in future
years.
Shares of Wabtec were up 0.3% pre-market to $98.50 in low
volume.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
September 17, 2018 08:53 ET (12:53 GMT)
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