Bombardier sees strong earnings growth over the next 5 years
Bombardier Inc. is selling its stake in Alstom SA in a deal that would generate proceeds of more than US$630 million at current market prices.
The offering has gathered enough investor demand to cover the sale, according to terms seen Tuesday 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 per cent 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 US$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 Monday 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 per cent to 93 Canadian cents at 12:42 p.m. in Toronto amid a broad market decline. Alstom was little changed at 45.83 euros at the close in Paris.