04-10-2015, 10:00 AM
Bombardier exploring options for rail business: report - The Globe and Mail
Quote:Bombardier is exploring ways to raise money from its transportation unit, potentially worth up to $5-billion, as the Canadian group grapples with huge cost overruns in its aircraft business, six sources familiar with the matter said.
The world’s largest manufacturer of planes and trains is working with banks on strategic options for its transportation arm, which provides rail vehicles, signalling and control equipment, the sources said on Friday.
Options would include a possible sale of all or part of the business, as well as an initial public offering (IPO) to retain Bombardier’s exposure to the healthier half of the business, three sources said, declining to be named since the matter is private.
A merger with another sector peer such as Germany’s Siemens or France’s Alstom could also be considered, one of the sources said, as a tie-up between China’s biggest train makers CNR and CSR Corp last year is putting pressure on competitors to consolidate and gain scale...