Bombardier shares spike 23 per cent on rail division rumours
Company reportedly rejects takeover bid as investors reassured by valuation
MONTREAL—Reports of a possible offer for Bombardier’s Transportation division sent the company’s shares up sharply Sept. 9, rising 27 cents to a $1.46 close.
The nearly 23 per cent spike came in the wake of a Reuters report stating Beijing Infrastructure Investment Co. was considering offering between $7 billion and $8 billion for Bombardier’s rail division. The Montreal-based company rejected the offer, saying it was not exploring selling a majority stake in the division at this time, Reuters said.
The news comes as the company’s aerospace segment continues moving forward with CSeries aircraft certification tests ahead of deliveries next year.
Bombardier has said previously it will spin off part of its rail division later this year as a way to boost its cash position and invest in several aerospace programs, but has insisted it will maintain control.