GE Modification Of Wabtec Deal Reflects 'Need For Cash', Says Gordon Haskett

Gordon Haskett analyst John Inch noted that Wabtec (WAB) and General Electric (GE) announced a modification to their rail merger agreement, calling it "unusual" for the terms of such a merger to be "changed in the 11th hour".

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The modified deal does not appear to be beneficial to GE shareholders and GE stated that the modification is to strengthen the company's balance sheet, which reinforces Inch's view that GE is "desperate for cash to pay down its debt and other liabilities as quickly as possible," he tells investors.

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Inch has an Underperform rating and $7 price target on GE shares.

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