I've read that current GE shareholders will automatically receive shares of the new company. General Electric and Wabtec have updated the terms of their deal to combine GE’s locomotives unit with the railroad-parts supplier. The exchange ratio for the combined Spin-off/merger transaction is 0.005371, meaning participating GE shareholders will receive 0.005371 shares of Wabtec common stock for each outstanding share of GE common stock held. Exchange ratio: GE shareholders receive .005371 shares of Wabtec for every 1 share of GE owned. It looks like a win for both companies and for GE shareholders. GE has decided to merge GE Transportation with Wabtec. Image source: Getty Images. Record Date: GE shareholders must own GE stock by February 14th and hold through February 25th close of trade to be eligible to receive Wabtec shares. The argument By. 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. General Electric will merge its transportation unit with Wabtec, news that's sending shares of both companies higher. The … Wabtec's EPS will increase because of GE Transportation's $19 billion backlog and higher margins.Wabtec’s P/E is 25 compared to similar industrials with a P/E of 19. GE shareholders would receive about 0.005403 of a share of Wabtec common stock for each share of GE common stock held as of the record date. Many small shareholders will receive cash in lieu of shares. GE shareholders own about 24.3 percent of Wabtec … General Electric and Wabtec have updated the terms of their deal to combine GE’s locomotives unit with the railroad-parts supplier. The Wall Street Journal. According to the earlier terms, General Electric’s shareholders were to get 40.2% with 9.9% going to GE. It looks like a win for both companies and for GE shareholders. Wabtec and its affiliates do not provide tax, legal or accounting advice. GE is selling its transportation business to Wabtec.The company will own a 50% stake in the business, although much ends up directly in the hands of GE shareholders.The deal looks fair for both partie ... and GE shareholders will get 50.1% ownership in the new combined company. 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. Near-term positive for shareholders. ... Shares of Wabtec … GE shareholders will hold about 50.1% of the combined group, the companies said, and will maintain the right to increase that ownership percentage going forward.