Great news for Western Pa. and especially Erie !!!! Announced today that Wabco with headquarters in Wilmerding agrees to purchase GE Transportation.
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BTW, That's Eleven Billion ( $11,000,000,000 ) reasons !
Taconite Hauler posted:Great news for Western Pa. and especially Erie !!!! Announced today that Wabco with headquarters in Wilmerding agrees to purchase GE Transportation.
I wouldn’t jump to such an optimistic conclusion because the way I read this announcement, GE and its shareholders are still in charge owning 50.1% of the merged company. I wouldn’t trust GE as didn’t they already end locomotive production at Erie?
https://www.reuters.com/articl...n-deal-idUSKCN1IM12I
And as I posted in the other thread on here about this deal:
How ironic – a company started by Thomas Edison merging with a company started by Edison’s bitter rival, George Westinghouse!
Bill (retired Westinghouse Electric but with friends and relatives who worked at the “Air Brake” and the “Switch”)
You're right, Bill, anything can happen now that WABCO has tossed their hat into the ring, and we know GE wanted to divest themselves in order to raise capital. The business has been decimated by terrible corporate decisions, not only in the transportation end, but throughout the whole company, a former model of consistant earnings. Shareholders currently hold underperforming shares of GE stock, and a major shakeup was inevitable. A million things could happen now, but the scenario holds hope that with WABCO on board, better decisions might happen !
Rick
Taconite Hauler posted:...A million things could happen now, but the scenario holds hope that with WABCO on board, better decisions might happen !
Rick
One can only hope!
I hope this turns out well. From what crews have told me, GE makes great products and it would be unfortunate if they started to tank.
Wonder if corporate GE's dislike of the locomotive business has anything to do with meeting the ever-increasing EPA standards?
Government mandates as part of it's job and business is responsible for the answers.
At some time there simply aren't any more magic hat solutions to these mandates.
Rule292 posted:Wonder if corporate GE's dislike of the locomotive business has anything to do with meeting the ever-increasing EPA standards?
Government mandates as part of it's job and business is responsible for the answers.
At some time there simply aren't any more magic hat solutions to these mandates.
That's the exact same thing I wondered, and I agree 100%.
EPA's "business model" - Make it a law: Comply or die.
I strongly suspect for many industrial sectors, the "Magic Hat" is just about depleted.
Andre
WftTrains posted:Taconite Hauler posted:Great news for Western Pa. and especially Erie !!!! Announced today that Wabco with headquarters in Wilmerding agrees to purchase GE Transportation.
I wouldn’t jump to such an optimistic conclusion because the way I read this announcement, GE and its shareholders are still in charge owning 50.1% of the merged company. I wouldn’t trust GE as didn’t they already end locomotive production at Erie?
https://www.reuters.com/articl...n-deal-idUSKCN1IM12I
And as I posted in the other thread on here about this deal:
How ironic – a company started by Thomas Edison merging with a company started by Edison’s bitter rival, George Westinghouse!
Bill (retired Westinghouse Electric but with friends and relatives who worked at the “Air Brake” and the “Switch”)
That's how I read it is that they merged. This is from Railway Age...
"Under the terms of the transaction, GE will receive $2.9 billion in cash for a 9.9% stake in the new company, while its shareholders will receive a 40.2% stake. Wabtec shareholders will hold the remaining 49.9% stake."
WftTrains posted:I wouldn’t trust GE as didn’t they already end locomotive production at Erie?
Don't they build locomotives for export at Erie? Or, did that end?
And as I posted in the other thread on here about this deal:
How ironic – a company started by Thomas Edison merging with a company started by Edison’s bitter rival, George Westinghouse!
LOL
Rule292 posted:Wonder if corporate GE's dislike of the locomotive business has anything to do with meeting the ever-increasing EPA standards?
Government mandates as part of it's job and business is responsible for the answers.
At some time there simply aren't any more magic hat solutions to these mandates.
I doubt this would be the case as GE has a huge head start on emission compliant locomotives over the competition now. As I understand it from reading various articles from reputable sources and knowing people who were part of other GE assets sold, GE is hurting from the purchase of Alstom's fossil fuel technology which was made under Jack Imhoff's period as CEO. They are selling profitable assets off to make up for that mistake. GE Appliances was making a mere $8 Bil in profit, but got sold to Haier, GE Capital is gone, , and GE Transportation is simply another profitable asset that will bring in much needed cash to satisfy share holders.
Of course that investment in Alstom's non-renewables may prove profitable after all if the US oil industry gets another jump start from the increase in foreign fuel.
Like others, I hope that WABCO is a good steward of the product and keeps good quality jobs in Erie where there are certainly needed.
GE Industrial solutions (switchgear, motor controls, lighting panels, busway, services, etc) going to ABB July 1. $2.6B
Aside from large generators, not much electric left in Electric.
I just want my pension to survive.
If they are selling all the profit makers what is the point of owning GE stock ?
That's why I SOLD all mine $18 ago.
clem k posted:If they are selling all the profit makers what is the point of owning GE stock ?
As far as I know, GE is keeping all their big money makers ..... Health Care, Aviation, Power and Water, Oil and Gas, …. Maybe I have that wrong?
Anyway, I also hope that this is good news for the folks in Erie ..... not bad
GE Water was sold over a year ago. $3B IIRC
No money in legacy industries I guess. (Long time GE shareholder but should have sold years ago).
EBT Jim posted:WftTrains posted:I wouldn’t trust GE as didn’t they already end locomotive production at Erie?
Don't they build locomotives for export at Erie? Or, did that end?
And as I posted in the other thread on here about this deal:
How ironic – a company started by Thomas Edison merging with a company started by Edison’s bitter rival, George Westinghouse!
LOL
I don't see how that's funny, I was under the impression as well that GE moved all production to Texas.
clem k posted:If they are selling all the profit makers what is the point of owning GE stock ?
In the past year it has gone from $29 down to $14 today. So none?
It's painful to read a story like this, from June 2017. There's never good news for the nice folks of Erie. Hopes …. dashed. For years now.
Certainly my family was among millions of others that felt the disillusion when their community is destroyed, in places like Pennsylvania coal mines and rust-belt manufacturing.
The corporate world today. Maximize returns on the dollar to please the big investors. Has happened many times in the past 50 years. Yes, I think it is ironic that two businesses founded by Edison and Westinghouse are merging. They were arch competitors at one time. I wonder what the new name will be ?? I am guessing about 25% of the employees will lose their jobs.
What's interesting about this is if I'm correct, this may mean that MPI now has direct access to GE Transportation designs to make commuter locomotives. That is if by WABCO the thread meant WABTEC. Perhaps GE would have a chance to redeem itself in the commuter locomotive market, we all know how the HSP-46 went.