Since bottoming in April, General Electric (GE) rose 20 percent and continued that uptrend when it announced it will merge GE Transportation with Wabtec (WAB). The deal gives GE a $2.9 billion cash infusion and voting majority ownership in the combined company. Even though asset sales are a natural progression in restructuring the firm, this particular deal is better than that for the beaten down conglomerate.
deal and controlling interest, through a 50.1 percent ownership interest, will not excite investors that much. That translates to 40.2 percent ownership in the spinoff and 9.9 percent retained by GE.
