The General Electric and Wabtec Merger: What It Means to Investors

Just as promised on its first-quarter earnings call, General Electric Company (NYSE: GE)has announced a deal to exit its transportation business as part of a wider plan to unload $20 billion worth of assets. The deal to merge GE transportation with Westinghouse Air Brake Technologies (NYSE: WAB), or Wabtec, is somewhat complicated, but in general can be seen as a near-term positive for shareholders.

However, it will do little to appease dyed-in-the-wool bears worried about the sustainability of the company's dividend and restructuring prospects. Let's take a look at both sides of the story.