In short, GE needs cash, and many investors may have preferred a deal with a higher cash component rather than the one outlined above. We use cookies to ensure that we give you the best experience on our website. DSPPs offer investors the opportunity to buy shares directly from the corporation, via the transfer agent, often without involving a broker. Any forward-looking statements speak only as of the date of this communication. This information does not constitute tax advice. The influx of $2.9 billion in cash from Wabtec won't impress the bears much. Raymond T. Betler, Wabtecs president and CEO, said: We are very excited to complete the merger of our two companies. 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. Creating the energy technologies of the future and improving the power networks that we depend on today. Should one of the parties die, ownership of the shares passes to the surviving tenant(s). GE will designate for nomination three independent Board members. Additionally, a when issued market is expected to begin trading on or about February 14th. Has been since process revisions were improved, but so few taxable spinoffs come up, the language has not been a problem so far (that I have seen). 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. 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. You should get the shares on the distribution date, February 25th. Explore the latest stories, news, downloads, and press tools. If you do not have this information, you should call our Lost Securities Department at the 800 number on this site. Access the latest press releases, media contacts, and press tools. Plus500. This website no longer supports the Internet Explorer web browser. Ultimately, GE agreed to unwind its ownership in the combined company (subject to certain limitations) over the next three years, but not in the 30 days immediately post close. This feels a bit disappointing as I have some doubts on the operating execution. Let's take a look at both sides of the story. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. If you wish to move your shares from registered to beneficial ownership, Broadridge or your broker will help you do so. Wabtec Corporation. Following the completion of the transaction, Wabtecs corporate headquarters will remain in Wilmerding, Pa. Wabtecs Freight Segment will be headquartered in Chicago, and Wabtecs Transit Segment headquarters will remain in Paris. Learn about governance at GE, including the latest Proxy Statement and information about the GE Board of Directors. Several types of Joint Registration exist including Joint Tenants with right of survivorship, Tenants by the Entirety and Tenants in common. Small shareholders will likely receive just cash in lieu of fractional shares and the odd exchange ratio could create orphaned positions and a period of forced selling. I agree the in-product help is in error for the taxable spinoff. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. So far I still have 18.395 shares in my Vanguard brokerage account. Let's start by breaking out who will own what after the merger. 2023-03 GE SCF Investor Report (PDF, 180 KB), 2022-12 GE SCF Investor Report (PDF, 70 KB), 2022-09 GE SCF Investor Report (PDF, 71 KB), 2022-06 GE SCF Investor Report (PDF, 182KB), 2022-03 GE SCF Investor Report (PDF, 182KB), 2021-12 GE SCF Investor Report (PDF, 182KB), 2021-09 GE SCF Investor Report (PDF, 181KB), 2021-06 GE SCF Investor Report (PDF, 71KB), 2021-03 GE SCF Investor Report (PDF, 79KB), 2020-12 GE SCF Investor Report (PDF, 64KB), 2020-09 GE SCF Investor Report (PDF, 72KB), 2020-06 GE SCF Investor Report (PDF, 72KB), 2020-03 GE SCF Investor Report (PDF, 79KB), 2019-12 GE SCF Investor Report (PDF, 380KB), 2019-09 GE SCF Investor Report (PDF, 383KB), 2019-06 GE SCF Investor Report (PDF, 369KB), 2019-03 GE SCF Investor Report (PDF, 353KB), 2018-12 GE SCF Investor Report (PDF, 59KB), 2018-09 GE SCF Investor Report (PDF, 88KB), 2018-06 GE SCF Investor Report (PDF, 88KB), 2018-03 GE SCF Investor Report (PDF, 88KB), 2017-12 GE SCF Investor Report (PDF, 87KB), 2017-09 GE SCF Investor Report (PDF, 35KB), 2017-06 GE SCF Investor Report (PDF, 160KB), 2017-03 GE SCF Investor Report (PDF, 160KB), 2016-12 GE SCF Investor Report (PDF, 160KB), 2016-09 GE SCF Investor Report (PDF, 155KB), 2016-06 GE SCF Investor Report (PDF, 160KB), 2016-03 GE SCF Investor Report (PDF, 160KB), 2015-12 GE SCF Investor Report (PDF, 159KB), 2015-09 GE SCF Investor Report (PDF, 159KB), 2015-06 GE SCF Investor Report (PDF, 175KB), 2015-03 GE SCF Investor Report (PDF, 154KB), 2014-12 GE SCF Investor Report (PDF, 158KB), 2014-09 GE SCF Investor Report (PDF, 159KB), 2014-06 GE SCF Investor Report (PDF, 161KB), 2012-12 GE SCF Investor Report (PDF, 155.0KB), 2012-09 GE SCF Investor Report (PDF, 155.0KB), 2012-06 GE SCF Investor Report (PDF, 155.0KB), 2012-03 GE SCF Investor Report (PDF, 156.0KB), 2011-12 GE SCF Investor Report (PDF, 154KB), 2011-09 GE SCF Investor Report (PDF, 156.0KB), 2011-06 GE SCF Investor Report (PDF, 157.0KB), 2011-03 GE SCF Investor Report (PDF, 100.0KB), 2010-12 GE SCF Investor Report (PDF, 101.0KB), 2010-09 GE SCF Investor Report (PDF, 100.0KB), 2010-06 GE SCF Investor Report (PDF, 101.0KB), 2010-03 GE SCF Investor Report (PDF, 101.0KB), 2009-12 GE SCF Investor Report (PDF, 101.0KB), 2009-09 GE SCF Investor Report (PDF, 98.8KB), CAUTION CONCERNING FORWARD LOOKING STATEMENTS. In the transaction, GE received about $2.9 billion in cash as well as shares of Wabtec common stock and Wabtec non-voting convertible preferred stock that, together, represent an approximately 24.9% ownership interest in Wabtec. Moreover, under the modified structure Wabtec will issue 3.3 million fewer shares than . We were told we will retain the same number of GE share units, but that their value will change. 40.2% of the combined entity will go to GE shareholders and 9.9% retained by GE. Through its subsidiaries, the company manufactures a range of products for locomotives, freight cars and passenger transit vehicles. Once you notify us of your certificate loss, we will initiate the process for you and then ask that you finalize the paperwork and submit the appropriate payment for processing. 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. Every U.S. state puts an obligation on shareholders to remain active or their shares will be considered lost. DSPP Some companies offer DSPPs, so please visit your online account to determine if a plan is available to you. Read GEs 2022 Proxy Statement, vote your shares and access the 2022 Annual Meeting. GE Transportation has received $3.6 billion in orders in the last two quarters. When will I have to pay taxes on the stocks. The companys culture and experienced global workforce will leverage the common values of innovation, collaboration, inclusiveness, and Lean and continuous improvement, to help solve its customers toughest challenges. Voices is a network for GEs US supporters interested in the companys impact in their communities and in issues that impact the company. To view documents for private transactions, please log into the password-protected Website, Issuers Determination and Communication of traded on an established securities market Status and Issue Price of Newly Issued Debt, Notice to Holders of certain medium-term notes issued by Subsidiaries of the General Electric Company. The dividend calendar shows you for more than 1,000 dividend stocks in which month which company distributes its dividends. GE announced today that it has completed the spinoff and merger of its Transportation business with Wabtec Corporation. The respective NYSE tickers will be GE WI and WAB WI. 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. GE also received approximately $2.9 billion in cash at closing. GE shareholders own about 24.3 percent of Wabtec on a fully diluted basis. 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. You will find the information under the "Dividend Payment Options" section of the website. Upon completion of the merger, GE shareholders are expected to collectively own approximately 24.3% of the outstanding shares of Wabtec common stock, and current Wabtec shareholders are expected to collectively own approximately 50.8%. Example: Mary Smith & Barbara Smith Ten Com. I don't know exactly what they are saying, but I think this has to be entered as a dividend (non-stock?). With this transaction, GE sold a portion of GE Transportation assets to Wabtec, spun off a portion of GE Transportation to GE shareholders and then GE Transportation merged with a wholly owned subsidiary of Wabtec. On May 21, 2018, GE and Wabtec confirmed the merger of GE Transportation with Wabtec in an $11 billion deal, completed on February 25, 2019, that saw Wabtec shareholders take a 50.8% shareholding in the merged . Contact information for general inquiries and feedback. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words may, will, should, potential, intend, expect, endeavor, seek, anticipate, estimate, overestimate, underestimate, believe, could, project, predict, continue, target or other similar words or expressions. Phone: 412-825-1000 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. Transfer shares to your broker via the transfer process (see FAQ "Ownership Questions"). If you have not established an online account, you may follow the online instructions or contact us via the 800 number on your account statement or this site. 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. Must they be reminded that we are retirees of a manufacturing company so most of us do not have the computer skills to educate ourselves further on this matter via the internet. 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 . We will keep you updated if there is a change. Access important shareholder information. Explore a timeline of GE technologies that have spurred transformation across the world. Please see attached notice for additional details. Wabtec has also been notified that it will now be included in the S&P 500 Index. The Motley Fool has a disclosure policy. It's one of the oldest and most widely used money market instruments in the U.S. and in markets around the world. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Together with our customers, were proving that no one is ever limited to only affordable, reliable, or sustainable energy. This communication is not a substitute for any proxy statement, registration statement, proxy statement/prospectus or other documents GE, Wabtec and/or SpinCo may file with the SEC in connection with the proposed transaction. That means a shareholder with 10,000 GE shares will walk away with only 54 shares of WAB along with a little cash. I end up with 27 million+ shares of Wabtec which obviously isn't correct! 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. The combined company, which is expected to have revenues of more than $8 billion in 2019, has approximately 27,000 employees in 50 countries. 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.. Example: Mary Smith & Barbara Smith Jt Ten, This registration allows an appropriate portion of the shares to pass to the estate of the holder upon the holder's death rather than to the surviving tenant. Tune in or catch up on GEs latest investor events and reports. (RTTNews) - General Electric Co. (GE) on Monday announced the completion of the spin-off and subsequent merger of its transportation business with Wabtec Corp. At GE, we rise to the challenge of building a world that works. It also provides aftermarket services. Wabtec's existing shareholders could own 49.9% of the combined entity and contribute a $2.9 billion cash payment to GE. Hi All, I don't have a quicken account but was reading the comments looking for direction also myself. 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. Signature Guarantee Programs have been developed and eligible financial institutions which subscribe to such programs are issued "Medallion Guarantee Stamps". I failed. WILMERDING, PA, (Feb. 25, 2019) Wabtec Corporation (NYSE: WAB) announced today it has completed its merger with GE Transportation, a former business unit of GE (NYSE: GE). GE's innovation engine where ideas become reality to create a better world and deliver differentiated tech across the company's industrial portfolio. WILMERDING, PA, (Feb. 25, 2019) Wabtec Corporation (NYSE: WAB) announced today it has completed its merger with GE Transportation, a former business unit of GE (NYSE: GE). A custodial registration requires the names of the custodian and the beneficial owner. Wabtec Corporation is a leading global provider of equipment, systems and value-added services for transit and freight rail. 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. Your corporation you own stock in may also support a stock sale plan. Learn about governance at GE, including the latest Proxy Statement and information about the GE Board of Directors. The freight portfolio features a comprehensive line of locomotives, software applications and a broad selection of mission-critical controls systems, including Positive Train Control (PTC). If You Do This, You Won't Have to Worry About Them, A Bull Market Is Coming: 3 Stocks to Buy Without Hesitation, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. Wabtec and GE shareholders will have ownership in a combined company with significantly expanded margins, a highly attractive growth profile based on an improved business mix, expanded global reach, and faster innovation in key growth areas. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. 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. announced that it had entered into an agreement to sell Shareowner Services to Equiniti Group plc (Equiniti Group). Summary. If so, you may enroll in the plan in any of the following ways: Make the investment via your online account. Dividend Reinvest Plans (DRIP) and Direct Stock Purchase Plans (DSPP) are plans provided on behalf of corporations to simplify investment activity. 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. We are seeing growth in rail traffic and recent promising orders for new and modernized locomotives from North American Class I, Shortlines and international railroads, and are confident in the compelling long-term opportunities and synergies before us.. All told, it looks like a good deal for Wabtec. A registered shareholder is the owner of record on the books of the corporation, generally kept by the transfer agent. GE will not be filing Form 8937 because 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.. Change your elections by completing the form on your account statement and returning it to Broadridge. 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. Together, we can expand our global reach, strengthen our market capabilities and lead digital innovation across the transportation industry. The combined company has a multi-year backlog of more than $23 billion. Payment months are February, May, August, November. However, the company will not receive the tax benefit possible if it had less than 50% and GE held on to . 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 and its affiliates do not provide tax, legal or accounting advice. Buy the number of shares of WABTEC per step 1 at a per share price of $73.96. The foregoing list of important factors is not exclusive. Disappointingly, they seem unwilling to take any action to get the incorrect tax treatment of the GE-WAB action corrected. The combination will make Wabtec a Fortune 500, global transportation leader in rail equipment, software and services, with operations in more than 50 countries. GE has decided to merge GE Transportation with Wabtec. You're right, I reversed the figures and corrected my original post. A notary stamp is not acceptable when transferring the ownership of stock. Furthermore, the transaction will facilitate a tax step-up with an NPV of approximately $1.1 billion of net tax benefit accruing to the combined company. Box 1342Brentwood, NY 11717. Every state has this law, often referred to as Unclaimed Property. Note that all shares held in a plan will be in DRS (book-entry) form. So if you are a GE shareholder, you should have a keen interest in the rationale for the deal because you will be owning stock in Wabtec.`. For the fiscal year ending December 31, 2017, Wabtec generated approximately 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. WAB ranks lowest in Sentiment; there it ranks in the 29th percentile. Together we are well positioned to take advantage of the opportunities created by industry trends toward efficiency and improved performance and, with the merger complete, we are focused on leveraging our complementary portfolios to spur growth.. Investors and security holders can also contact Wabtec at Wabtec Corporation, 1001 Air Brake Avenue, Wilmerding, PA 15148 or by calling 412-825-1543. Substantial annual run-rate synergies of $250 million and a net present value of approximately. On July 27, 2015, Wabtec announced that it plans to purchase 51% of Faiveley Transport's shares in a cash-and-stock deal valued . The transit portfolio provides highly-engineered systems and services to virtually every major rail transit system around the world, supplying an integrated series of components for buses and all train-related market segments that deliver safety, efficiency and passenger comfort. Drive increased value for shareholders: With approximately $8 billion in combined revenues and a large global installed base, the combined company will have a leading position in key freight rail and transit geographies worldwide, and will be well-positioned to serve customers as industry demand continues to improve. Interested parties can visit. When I sell or before? Socials. Wabtec reported a strong Q1, also forecasting robust growth for the year with record backlog. 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. I still have not spoken to Schwab nor my Investment Advisor however I see that Schwab has changed the cost basis to $78.06 for buying Wabtec shares which is the Close on 2/25/19 (instead of the average of the high & Low for that day). Learn more about our culture, businesses, and life at GE. Accordingly, EQ will serve as the transfer agent and registrar for GE Common Stock. At Wabtec, we help our customers overcome their toughest challenges by delivering rail and industrial solutions that improve safety, efficiency and productivity. Receives 9.9% of shares in new Wabtec and $2.9 billion in cash. These documents can be obtained free of charge from the sources indicated above. Access important shareholder information. As of this writing, there have been no discussion of index changes related to this transaction. There are several custodial registrations possible. In a sense, GE is covering its 2018 dividend by borrowing money and relying on asset sales. General Electric Is Getting Ready to Fire On all Cylinders, Why General Electric Stock Aced an 8% Gain Thursday, U.S. Money Supply Is Doing Something It Hasn't Done in 90 Years, and It May Signal a Big Move for Stocks, Why I Refuse to Chase the Maximum Social Security Benefit, Social Security Cuts May Be Coming. 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. Wabtec manufactures products for locomotives, freight cars and passenger transit vehicles, and builds new locomotives up to 6,000 horsepower (4 MW). $3.9 billion in revenue and $504 million in adjusted EBIT (approximately 13% margin). Explore GEs recent and historic SEC filings. This communication contains forward-looking statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including statements regarding the proposed transaction between GE and Wabtec. To sell shares that are held in a plan, please refer to the FAQ section on "Stock and Dividend Plans. 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. DRIPs offer shareholders the convenience of reinvesting dividends, minimizing the expense and effort associated with dividend checks. Tim WesleyTwesley [at] Wabtec [dot] comclass="spamspan" This registration gives sole ownership to the single individual and requires that the person's legal name be used. In the transaction, GE received about $2.9 billion in cash as well as shares of Wabtec common stock and Wabtec non-voting convertible preferred stock that, together, represent an. To best address the business needs of our rail customers, we offer a variety of products and services through our Freight and Transit segments. On August 5, 2014, GE completed the initial public offering (IPO) of its North American Retail Finance business, Synchrony Financial, as a first step in a planned, staged exit from that business. Wabtec is a leading supplier of critical components, locomotives, services, signaling and logistics systems and services to the global rail industry. 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. A culture of integrity, compliance, safety, and respect for human rights, while reducing our environmental footprint. Our technology, global network, and exceptional team is fueled by a missionbuilding a world that works. Information regarding the directors and executive officers of GE is contained in GEs proxy statement for its 2018 annual meeting of stockholders, filed with the SEC on March 23, 2018, its Annual Report on Form 10-K for the year ended December 31, 2017, which was filed with the SEC on February 23, 2018, its Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, which was filed with the SEC on May 1, 2018 and certain of its Current Reports filed on Form 8-K. Information regarding the directors and executive officers of Wabtec is contained in Wabtecs proxy statement for its 2018 annual meeting of stockholders, filed with the SEC on April 5, 2018, its Annual Report on Form 10-K for the year ended December 31, 2017, which was filed with the SEC on February 26, 2018, its Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 which was filed with the SEC on May 4, 2018 and certain of its Current Reports filed on Form 8-K. Certificates will not be issued for shares held in a plan. 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. Explore the latest stories, news, downloads, and press tools. What is the tax basis for the WAB shares received by GE holders? I received the following email from GE Investor Relations. Pittsburgh, PA 15212 - USA Some plans do require that investors own a minimum number of shares prior to participating in a plan. Wabtec shares rose 4.3 percent to $99.28. Read the latest GE financial news releases and stories. Through its subsidiaries, the company manufactures a range of products for locomotives, freight cars and passenger transit vehicles. Discover how our people & technology are solving global issues, improving lives, and changing industries.