GE announced last May that it will merge its transportation unit, which manufactures freight locomotives and has been under GE control for a century, with rival Wabtec Corp. (WAB) - Get Report in a deal valued at $11 billion.
The revised deal will give a majority stake in the new company to Wabtec shareholders (50.8%) while GE shareholders get 24.3% and GE gets 24.9% of the new company. Under the original deal, 49.9% of the company went to Wabtec shareholders with 40.2% going to GE shareholders and 9.9% going to GE.
Wabtec shares closed down 3.5% on Friday.
This new structure turns GE's side of the deal into a taxable dividend for the company and its shareholders. GE will receive about $3.4 billion in cash as part of the restructured deal and the company said that it could use the money to pay down some of its $100 billion debt, which would benefit bondholders.
The transaction is expected to close by the end of February, the companies said.