Bombardier seeking investors for all business units
Bombardier Inc. is exploring the sale of a stake in any of its business areas, not just its rail unit, to ensure it can finish development of its delayed CSeries jet, according to four sources familiar with the situation.
The Montreal-based company has hired investment bankers to look at a variety of financing options, the sources said, including selling aerospace or rail assets in full or in part, forming joint ventures or bringing in private equity investors.One source familiar with the company’s thinking said Bombardier hoped to secure some additional source of cash, through the sale of a business unit or another arrangement, perhaps with a Canadian government, before its third-quarter earnings report on Oct. 29.
Two of the sources said Bombardier’s board was expected to meet in the next few days, but it was not immediately clear what was on the agenda.
A banking source said the company is not desperate for cash but wants to be proactive and shore up its stock, which has dropped more than 50 per cent in the last year as it pushes to bring the new CSeries jet into service, years late and billions over budget. | READ MORE