General Electric is in discussions to sell its rail business to Wabtec, according to multiple reports Friday.
Shares of Wabtec rose more than 6 percent in trading Friday.
The industrial conglomerate’s transportation business is valued at about $7 billion, with GE examining multiple ways to offload the division. CEO John Flannery has been looking to sell or spin-off more than $20 billion in assets since October. The conglomerate most recently announced plans for private equity firm Veritas Capital to acquire a GE health-care unit for $1.05 billion in cash.
Wabtec – an acronymization of Westinghouse Air Brake Technologies Corporation – is a manufacturer of locomotives, freight cars and other rail-related products. The company is based in Wilmerding, Pennsylvania.
General Electric and Wabtec did not immediately respond to CNBC requests for comment.
GE stock was up over 5 percent, rising earlier in the day when the company reported better than expected first quarter earnings.
This is breaking news. Please check back for updates.