That means a shareholder with 10,000 GE shares will walk away with only 54 shares of WAB along with a little cash. We were told we will retain the same number of GE share units, but that their value will change. Just as promised on its first-quarter earnings call,General Electric Company (GE 0.93%)has announced a deal to exit its transportation business as part of a wider plan to unload $20 billion worth of assets. General Electric Company confirms that all distributions made on General Electric Company Series D preferred stock in 2016 constitute dividends for purposes of related IRS Forms 1099-DIV and 1042-S reporting , consistent with the tax disclosure included with the prospectus published in connection with the issuance of these securities. Strategic Combination Will Drive Shareholder Value Creation by Accelerating Innovation in Transportation and Logistics. All told, if GE can maintain its full-year 2018 cash flow guidance and FCF can improve markedly in 2019, then the Wabtec deal will turn out to have been a smart move. GE has the right to increase the portion of the merged company owned by GE shareholders (subject to a corresponding reduction in GEs ownership). The company also builds new switchers locomotives used to move cars around in railyards and commuter locomotives. 30 Isabella Street We were advised to turn to websites for further information. Note that sales are subject to a fee of $10 per transaction plus $0.15 per share sold. The deal to merge GE transportation withWestinghouse Air Brake Technologies(WAB -0.07%), or Wabtec, is somewhat complicated but, in general, can be seen as a near-term positive for shareholders. If you hold certificates that you wish to transfer, please follow the steps below: Broadridge Corporate Issuer SolutionsP.O. Our teams have made significant progress in integration planning, and this process has only strengthened our confidence in the value creation potential of the combination. Equiniti Trust Company Phone: 1-800-786-2543 (toll free) or 1-651-450-4064 Website: Shareowneronline.com Regular Mail Delivery: EQ Shareowner Services P.O. The Uniform Commercial Code (UCC) entitles transfer agents and corporate issuers to receive signature guarantees to protect them against fraudulent and unauthorized transfers. Wabtec Chairman, Albert J. Neupaver, has been re-appointed executive chairman; Raymond T. Betler will remain president and CEO of the merged company; Rafael Santana, president and CEO of GE Transportation, will become president and CEO of Wabtecs Freight Segment and Stphane Rambaud-Measson, will become president and CEO of Wabtecs Transit Segment. Has anyone found a cite for that? Our technology, global network, and exceptional team is fueled by a missionbuilding a world that works. If you do not have this information, you should call our Lost Securities Department at the 800 number on this site. Voices is a network for GEs US supporters interested in the companys impact in their communities and in issues that impact the company. I couldnt find it on the web. GE announced today that it has completed the spinoff and merger of its Transportation business with Wabtec Corporation. Is Renewable Energy the Key to General Electric's Future? Plus500. Investors and security holders will also be able to obtain free copies of the documents filed by GE, Wabtec and/or SpinCo with the SEC from the respective companies by directing a written request to GE and/or SpinCo at General Electric Company, 41 Farnsworth Street, Boston, Massachusetts 02210 or by calling 617-443-3400. This communication is for informational purposes only and not intended to and does not constitute an offer to subscribe for, buy or sell, the solicitation of an offer to subscribe for, buy or sell, or an invitation to subscribe for, buy or sell, any securities or the solicitation of any vote or approval in any jurisdiction pursuant to or in connection with the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. Please send us a letter of instruction signed by all registered owners stating your intent to transfer. 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 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.. Equiniti Trust Company (EQ) transfer agent and registrar for GE. Will wait to see if it stays that way or if it changes again. Learn More. The transaction is valued at approximately $11.1 billion.When adjusted for the net tax benefit of $1.1 billion accruing to the combined company, the transaction value is $10 billion. Wabtec's existing shareholders could own 49.9% of the combined entity and contribute a $2.9 billion cash payment to GE. The companys average rating score is 2.71, and is based on 5 buy ratings, 2 hold ratings, and no sell ratings. Answers to popular and relevant inquiries. Thanks for the information. Our energy expertise spans from renewable wind energy to emission-reducing natural gas, as well as physical and digital solutions to modernize the grid connecting it all. Historic cost basis in GE shares is unchanged and irrelevant to determining the Were continuing to do all we can to support our customers and employees during this unprecedented time. By bringing together our highly complementary strengths we are confident that this transformational combination will create value for both Wabtec and GE shareholders, innovative solutions for our customers, and new outlets for long-term career growth for our employees. Effective immediately, Wabtec Chairman Albert J. Neupaver has been re-appointed executive chairman of the company, while Raymond T. Betler remains Wabtecs president and CEO. Management has already told investors to expect earnings and, by implication, cash flow to be at the lower end of 2018 guidance -- its most recent guidance implies a $500 million cut in power segment profit, which will be hard to make up elsewhere. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) unexpected costs, charges or expenses resulting from the transaction; (2) uncertainty of the expected financial performance of the combined company following completion of the transaction; (3) failure to realize the anticipated benefits of the transaction, including as a result of integrating GE Transportation into Wabtec; (4) the ability of the combined company to implement its business strategy; (5) difficulties and delays in achieving revenue and cost synergies of the combined company; (6) inability to retain and hire key personnel; (7) the risk that shareholder litigation in connection with the transaction or other settlements or investigations may result in significant costs of defense, indemnification and liability; (8) evolving legal, regulatory and tax regimes; (9) changes in general economic and/or industry specific conditions, including the impacts of tax and tariff programs, industry consolidation, and changes in the financial condition or operating strategies of our customers; (10) changes in the expected timing of projects; (11) a decrease in freight or passenger rail traffic; (12) an increase in manufacturing costs; (13) actions by third parties, including government agencies; and (14) other risk factors as detailed from time to time in Wabtecs reports filed with the SEC, including 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. Summary. Proactive performance monitoring can also be improved by integrating Wabtec products within locomotive control systems and by leveraging GE Transportations expansive remote monitoring and diagnostics systems. Offering a suite of products to help unlock the full potential of additive manufacturing. Wabtec and GE Transportation will be combined in a transaction in which GE will (i) sell a portion of the assets of GE Transportation to Wabtec; (ii) complete the spin-off or split-off of a portion of GE Transportation to GE shareholders; and (iii) immediately thereafter merge GE Transportation with a wholly owned subsidiary of Wabtec. Tune in or catch up on GEs latest investor events and reports. Visit your online account and change your investment elections in the appropriate plan section. In some cases additional documents will be required to complete the transfer. Wabtec has also been notified that it will now be included in the S&P 500 Index. Request that Broadridge facilitate the sale of your shares by completing the form attached to your account statement and returning it to Broadridge. Contact information for general inquiries and feedback. The registered shareholder may be an individual, a trust, a broker, etc. If the transaction is effected via an exchange offer, GE will also file with the SEC a Schedule TO with respect thereto. Wabtec pays a dividend 4 times a year. $1.1 billion of net tax benefit will accrue to the combined company. As of this writing, there have been no discussion of index changes related to this transaction. Creating the energy technologies of the future and improving the power networks that we depend on today. Hi All, I don't have a quicken account but was reading the comments looking for direction also myself. Stay up to date with the latest resources for the planned spin-offs. On 2/25/19 GE spun off its transportation business to Wabtec, producing .005371 share of Wabtec for each share of GE. The transaction is expected to be tax free to the companies' respective shareholders. Combining GE Transportations constant monitoring of messages from 17,000 locomotives with monitoring of Wabtecs passenger and shunter locomotives can make for a smarter, more efficient and safer transportation system. Offering a suite of products to help unlock the full potential of additive manufacturing. I end up with 27 million+ shares of Wabtec which obviously isn't correct! Both businesses are expected to benefit from the cyclical tailwinds they are experiencing as industry conditions improve. You can also buy GE stock through brokerage firms that act as a facilitator between individual investors and GE. Is Wabtec Exposed To GE's Pension Woes? - SeekingAlpha I'm looking for someone to tell me how! GE owns common stock and non-voting convertible preferred stock, which together represent approximately a 24.9% economic interest in Wabtec on a fully diluted basis. Normally a corporation will have documentation on their website with a basic formulas to calculate the subsequent tax basis. 30 Isabella Street Pittsburgh, PA 15212 - USA Phone: 412-825-1000 Fax: 412-825-1019. GE - WAB spinoff with cash for partial share Quicken Deliver improved customer outcomes through expanded monitoring and services: Together, the combined company will have an expanded footprint of skilled technicians and repair shops that will result in a simpler customer interface and a more streamlined services experience. Learn how were delivering on our priorities. Will GE shareholders get shares of Wabtec? Tune in or catch up on GEs latest investor events and reports. Also, an audio replay of the call will be available by calling 412-317-0088 (passcode: 466#). GE also received approximately $2.9 billion in cash at closing. This merger establishes Wabtec as a Fortune 500, global transportation and logistics leader by combining Wabtecs broad range of freight, transit and electronics products with GE Transportations best-in-class equipment, services and digital solutions in the locomotive, mining, marine, stationary power and drilling industries. These instructions should provide the name, address and social security number for each transferee and should indicate the number of shares to be transferred. By embracing diverse teams and perspectives, we are better equipped to build a world that works. For example: Mary Jones Tr U/A dtd 4/15/98 The Mary Jones Trust FBO Mary Jones. It also provides aftermarket services. Raymond T. Betler, Wabtecs president and CEO, said: We are very excited to complete the merger of our two companies. Read the latest GE financial news releases and stories. Explore GEs recent and historic SEC filings. 412.825.1543, Transportation solutions that revolutionize the way the world moves. Include any additional instructions indicating how you wish the shares to be transferred. Ive had a series of email exchanges with the corporate actions team at Ameritrade. I am certainly no expert in how index membership decisions are made, but its worth watching. The combination will bring together two global leaders in rail equipment, services and software, combining GE Transportation, a global digital industrial leader and supplier to the rail, mining, marine, stationary power and drilling industries, with Wabtecs broad range of freight, transit and electronics solutions. Dividend Reinvest Plans (DRIP) and Direct Stock Purchase Plans (DSPP) are plans provided on behalf of corporations to simplify investment activity. Drawing on nearly four centuries of collective experience across Wabtec, GE Transportation and Faiveley Transport, the company has unmatched digital expertise, technological innovation, and world-class manufacturing and services, enabling the digital-rail-and-transit ecosystems. Create a leading equipment, aftermarket services, and digital solutions provider across the transportation ecosystem: From factory to final destination and every point in-between the combined company will have the capabilities to accelerate lifecycle solutions for the transportation industry and unlock significant productivity for customers by improving interoperability, efficiency, and competitiveness. Along with its industry-leading portfolio of products and solutions for the rail and transit industries, Wabtec is a leader in mining, marine and industrial solutions. Wabtec Media Contact Can all this be explained in normal peoples language. How can I obtain a copy of my 1099?You may download and print a copy of a Broadridge issued 1099 by accessing your online account at investor.broadridge.com. If not, it would represent a missed opportunity to possibly bring in some more much-needed cash. Thank you. Should one of the parties die, ownership of the shares passes to the surviving tenant(s). GE received approximately $2.9 billion in cash as well as shares of Wabtec common stock and Wabtec nonvoting convertible preferred stock that together represent an approximately 24.9 percent ownership interest in Wabtec. GE shareholders own about 24.3 percent of Wabtec on a fully diluted basis. Let's start by breaking out who will own what after the merger. GE's transportation unit to merge with Wabtec in a deal valued at $11.1 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. Complementary businesses and large global installed base will create additional opportunities for cross-selling, aftermarket services growth and new solutions in a rapidly evolving industry. If you have lost your share certificates, we can help replace them, by following these steps: Broadridge Corporate Issuer SolutionsP.O. Readers are cautioned not to place undue reliance on any of these forward-looking statements. You can also access the link by going to www.wabtec.com and clicking on the Webcasts tab in the Investor section. WAB scores best on the Quality dimension, with a Quality rank ahead of 85.16% of US stocks. Original Value. DSPPs offer investors the opportunity to buy shares directly from the corporation, via the transfer agent, often without involving a broker. As a result of an internal reorganization undertaken by General Electric Company, interest payments made after November 25, 2018 will be treated as U.S.-source interest for U.S. federal income tax purposes. 2023 Wabtec Corporation. GE Transportation | GE News - General Electric Accomplished leaders building GEs legacy. All statements, other than historical facts, including statements regarding the expected benefits of the transaction, including future financial and operating results, the tax consequences of the transaction, and the combined companys plans, objectives, expectations and intentions; legal, economic and regulatory conditions; and any assumptions underlying any of the foregoing, are forward-looking statements. 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. Making the world smarter, happier, and richer. This fee structure was not changed as part of the switch to, Avoid Losing Your Shares to the State as Unclaimed Property. If you want to sell your shares of GE stock, please contact GEs current transfer agent, Equiniti Trust Company (EQ). Example: Mary Smith & Barbara Smith Ten Com. Shares of General Electric Co. GE, +1.43% surged 2.0% in premarket trade Monday, after the industrial conglomerate agreed to merge its GE Transportation unit with rail operator Wabtec Corp. WAB . Cost basis and return based on previous market day close. Wabtec is a global provider of equipment and systems services for transit and freight rail. That should wipe out the cash received in the dividend. Pittsburgh, PA 15212 - USA Learn about governance at GE, including the latest Proxy Statement and information about the GE Board of Directors. 86% of retail CFD accounts lose money, Registration on or use of this site constitutes acceptance of our. All Rights Reserved. Otherwise, if your shares are not part of such plans, you must take your certificate(s) to a securities broker to sell the shares. How do I know which date 2/25 or 2/26 and if to use the Close or High & Low divided by 2? 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. There are several custodial registrations possible. At GE, we are committed to building a more diverse workforce and a more inclusive workplace. Are they held somewhere or will I get actual stock certificates mailed to me? At Wabtec, we help our customers overcome their toughest challenges by delivering rail and industrial solutions that improve safety, efficiency and productivity. Begin typing your search term above and press enter to search. As a result, the merger is no longer structured as a Reverse Morris Trust and instead will be taxable to GE shareholders. When will I have to pay taxes on the stocks. The date of record for the transaction is February 14th and GE shareholders as of that date will receive ~0.005403 shares of Wabtec for each GE common share owned. Wabtec and GE Transportation will host a conference call today at 8:30 am Eastern to discuss the transaction. The date of record for the transaction is February 14th andGE shareholders as of that date will receive ~0.005403 shares of Wabtec for each GE common share owned. Wabtec shareholders own approximately 50.8% of Wabtec on a fully diluted basis and GE shareholders own approximately 24.3% of Wabtec on a fully diluted basis. Learn more about our culture, businesses, and life at GE. 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. GE's innovation engine where ideas become reality to create a better world and deliver differentiated tech across the company's industrial portfolio. Notification via fax to: (215) 553-5402; attention Lost Securities Dept. Please refer to page two of the Legal Transfer Form for additional document requirements based on your stock transferring situation. Change your elections by completing the form on your account statement and returning it to Broadridge. Fortunately for Buffett, he did not buy common shares of GE stock. ", Broadridge Corporate Issuer Solutions P.O. If you hold shares in DRS Book-Entry (no certificate), please follow the steps below: How do I transfer registered shares to beneficial or street shares via my broker? Explore a career with us. There was no explanation as to why this was done. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. GENERAL ELECTRICs dividend is lower than the US industry average of 1.84%, and it is lower than the US market average of 3.4%. To view a copy of the presentation that will be discussed during the call, click on the Press Releases tab under About Us and click on the press release titled Wabtec and GE Transportation to Merge. The presentation will be included at the end of the press release on the website. In some cases additional documents will be required to complete the transfer. The combined company, which is expected to have revenues of more than $8 billion in 2019, has a compelling growth profile, especially as market conditions improve in the industries it serves. The combination will make Wabtec a Fortune 500, global transportation leader in rail equipment, software and services, with operations in more than 50 countries. To make the world smarter, happier, and richer. Learn about governance at GE, including the latest Proxy Statement and information about the GE Board of Directors. The foregoing list of important factors is not exclusive. General Electric Co. changed the structure of the planned spinoff of its transportation division by taking a larger stake in the new company rather than giving it to shareholders. GE's innovation engine where ideas become reality to create a better world and deliver differentiated tech across the company's industrial portfolio. A surety bond is typically obtained by paying a premium to the surety company equal to 2% of the current value of the shares being replaced. GE shareholders will receive 24.9% of Wabtec stock. Wabtec has been hit by the pandemic and only has seen a partial recovery in 2021. In the event of loss, a surety bond of 2% will be required to replace the certificates. The bearish case for GE stock, for the most part, focuses on the deterioration in free cash flow (FCF) and the ongoing problems in the power segment. On July 27, 2015, Wabtec announced that it plans to purchase 51% of Faiveley Transport's shares in a cash-and-stock deal valued . What is the tax basis for the WAB shares received by GE holders?
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