GE Reworks Wabtec Deal to Raise More Cash for Itself

GE shareholders will get smaller stake so conglomerate can pay down debt

Thomas Gryta

Jan. 25, 2019 10:23 a.m. ET

General Electric Co. changed the structure of the planned spinoff of its transportation division by taking a larger stake in the new company rather than giving it to shareholders.

GE plans to sell its stake in the new company, which will ultimately bring about $3.4 billion in cash to GE. The change makes the deal more favorable to bondholders since GE said it could use the money to pay down some of its more than $100 billion in debt.

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