GE to acquire Harmon Industries - Brief Article

Railway Age, August, 2000

General Electric Co. plans to acquire Harmon Industries in a deal valued at $425 million, including $342 million in stock and $83 million in debt assumption. Harmon will become part of GE Harris Railway Electronics, a joint venture of GE Transportation Systems and Harris Corp. GE said it will issue Harmon shareholders $30 of GE stock for each Harmon share--more than double Harmon's July 14 closing price of $13.19 on the NASDAQ stock market.

Harmon had sales of $304 million in 1999. Following the announcement, Harmon shares shot up 124% on July 17 to close at $29.56. GE shares rose slightly, up $1.56 to $53.75 on the New York Stock Exchange.