Webtec Files Proxy Statement for Proposed GE Deal

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 [e-mail]

(END) Dow Jones Newswires

September 17, 2018 08:53 ET (12:53 GMT)

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