Western Railroad Discussion > GE Is in Talks to Unload Rail Business in Deal With Wabtec

https://www.bloomberg.com/news/articles/2018-04-20/ge-is-said-in-talks-to-unload-rail-business-in-deal-with-wabtec

I'm skeptical of this rumor, based on observing real time trading actions few weeks ago.

A bio tech expert told me secondhand that GE's Medical business is overrated, and should be sold off. Quote in this article hints at importance of GE Transportation:

Despite the industry’s challenges, GE Transportation routinely ranks among GE’s most-profitable units. It generated operating income of $824 million last year, with a profit margin of almost 20 percent.

The silly, reactionary, and neurotic financial media is at it again! My comment, of course, is speculation, too, so I could be wrong.

I'm sure the story is real, might not be serious but well placed to see what other interest it might evoke.
I would have trouble believing that the Class 1s would view Wabtec as a major motive power supplier
considering their rather patient delivery on transit projects.

Out

callum_out Wrote:
-------------------------------------------------------
> I'm sure the story is real, might not be serious
> but well placed to see what other interest it
> might evoke.
> I would have trouble believing that the Class 1s
> would view Wabtec as a major motive power
> supplier
> considering their rather patient delivery on
> transit projects.
>
> Out

Hehe. How subtle and nice of you to comment on Wabtec like that.

I believe the Wabtec rumor started right here on TO, back in October last year:

https://www.trainorders.com/discussion/read.php?1,4404302

Off topic, but typical example of financial media rumor mill (Home Depot buying XPO? Bahaha):

https://www.trainorders.com/discussion/read.php?1,4445453

Bloomberg is a more reputable rumor generator than Street.com, so I do agree with your opinion. The 6 months old "GE is gonna dump the Transportation division" rumor accelerated the panic selling. Now that the price has rebounded a little we get this (with Wabtec idea "added," possibly stolen from TO discussions) to retroactively explain the recent rise in price? Whether the Wabtec talk is true or not is not relevant to me, when this story stinks of market psychology play.

Buy the rumor, sell the news works better when you start the rumor...

Investment banks make money trading shares and bonds. The more buzz, the more they can trade.

That said, I could see a private equity firm doing a joint venture with GE for the loco business.

Put some cash in the deal, let GE unconsolidate the loco business, have PA buy the Erie campus as an extension of Penn State's fine engineering school.

Lots of angles...

Posted from Android

That GE wants to sell GET is certainly no rumor. The Wabtec one is a rumor, but I had heard it from someone in GET who doesn't read TO. I'd also heard the first step was actually an IPO, but that's also a rumor.

I wouldn't say that GET is desirable, but it may be one of the few divisions not overvalued.

Waybiller Wrote:
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> That GE wants to sell GET is certainly no rumor.
> The Wabtec one is a rumor, but I had heard it from
> someone in GET who doesn't read TO. I'd also
> heard the first step was actually an IPO, but
> that's also a rumor.
>
> I wouldn't say that GET is desirable, but it may
> be one of the few divisions not overvalued.

Interesting. But your source in GET may well have heard the rumor from someone in GET who reads Trainorders.

callum_out, cchan006 and Lackawanna484 --
Thank you, each of you, for your excellent insights. Fascinating! Deadly serious corporate psychological games. Take nothing literally or at face value.

It will be very interesting to see what happens next.

"Stay tuned for the next episode of "As the Turntable Turns," brought to you by GE -- "We bring good things to light!" "

Margaret_SP_fan Wrote:
-------------------------------------------------------


> "Stay tuned for the next episode of "As the
> Turntable Turns," brought to you by GE -- "We
> bring good things to light!" "

Or for those of us that remember General Electric Theater..."progress is our most important product" Our family watched it on Sunday nights on our secondhand black and white TV with a rabbit ear antenna. Trivia question -- who hosted the TV shows? Hint: he later became our president!

Bruce

BCutter Wrote:
-------------------------------------------------------

> Or for those of us that remember General Electric
> Theater..."progress is our most important product"
> Our family watched it on Sunday nights on our
> secondhand black and white TV with a rabbit ear
> antenna. Trivia question -- who hosted the TV
> shows? Hint: he later became our president!
>
> Bruce

Here's an image I found of said actor and later President :)

the other Bruce

---

Also the only union leader to be elected president of the US.

Maybe even the only union member ever elected president.

Posted from Android

Based on my extensive experience with the Wabtec dispatching system and their experts
associated with it, any locomotive built by Wabtec will have the reliability
of a GE U-series.