Shares surged plus seven per cent
Economic experts say Bombardier's rail division could be worth roughly $4.6 billion. Quebec’s economy minister says he’s been assured by Bombardier’s chairman that the transportation’s railway division is not for sale despite a report suggesting the company is working on a sale, merger or spinoff that could be worth up to $5 billion US.
- I received confirmation this morning (from Pierre Beaudoin) that the transportation division is not for sale,” Jacques Daoust announced in a news release.
Daoust said there is currently a worldwide consolidation movement in the transportation industry, and Bombardier is considering whether to participate.
But he added the company’s unwillingness to sell its Berlin-based rail operations is good news for employees and all Quebecers.
Earlier in the day, analysts said a big move involving Bombardier’s railway division would make sense.
Bombardier’s shares surged more than seven per cent in early April 10 morning trading. They closed at $2.64, up four cents or 1.5 per cent on the Toronto Stock Exchange.
Bombardier’s stock — usually one of the Toronto market’s most active issues — has plummeted to a low of $2.26 amid poor results, suspension of its dividend and delays in its CSeries commercial jet.
Bombardier spokeswoman Isabelle Rondeau had said the company wouldn’t comment on a Reuters report, which cited several unidentified sources as saying Bombardier was working on a deal that could be worth up to $5 billion US.
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