The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Bombardier Inc is selling its stake in Alstom SA in a deal that would generate proceeds of more than $630 million at current market prices.
The offering has gathered enough investor demand to cover the sale, according to terms seen by Bloomberg. Price guidance will follow and such accelerated offerings typically come at a discount. After completion of the sale, Bombardier said it expects to have exited its 3.1% stake in Alstom’s common stock.
The deal comes on the heels of Bombardier’s sale of its train-making business to Alstom for about $3.6 billion. That transaction included the stake in the French company that Bombardier is selling. Separately, Bombardier has exited its regional-jet business and now focuses on making private planes.
The Montreal-based company asked creditors to approve changes to terms on eight bond issues after an unidentified noteholder argued that asset sales including the rail and commercial-aircraft deals violated covenants on debt maturing in 2034.
Bombardier fell 2.1% to 93 Canadian cents at 12:42 pm in Toronto amid a broad market decline. Alstom was little changed at 45.83 euros at the close in Paris.