GE nears deal to merge transportation unit with Wabtec -sources
By Harry Brumpton and Greg Roumeliotis
May 20 (Reuters) - General Electric Co is nearing a
deal to merge its transportation business, which manufactures
train engines, with Wabtec Corp, a U.S. maker of
equipment for the rail industry, two people familiar with the
matter said on Sunday.
A deal that could value the combined company at more than
$20 billion could be announced as early as this week, the
sources said, asking not to be identified because the
negotiations are confidential.
There is always a possibility that the deal talks, which
center on using a tax-efficient structure called a Reverse
Morris Trust, could collapse at the last minute, the sources
GE and Wabtec did not immediately respond to requests for
(Reporting by Harry Brumpton and Greg Roumeliotis in New York;
Editing by Lisa Shumaker)
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