“Alstom confirms being in discussions with Bombardier regarding a possible acquisition of Bombardier Transportation by Alstom,” Alstom announced in a statement on its website on February 17. “Discussions are on-going. No final decision has been made.”
According to several press reports, Alstom is considering offering to buy Bombardier Transportation for around $US 7bn which would help to relieve Bombardier’s $US 9bn debt burden and allow it to concentrate on its private jet business.
Caisse de Dépôt et Placement du Québec holds a 32.5% stake in Bombardier Transportation, and the Alstom acquisition could result in the pension fund ending up with a holding of around 20% in Alstom.
