Bombardier vows to fight Alstom claims on railway deal at international arbitration
April 26, 2022 By The Canadian Press
MONTREAL — Bombardier Inc. says it intends to “vigorously” fight claims by Alstom S.A. relating to the sale of its transportation operations in early 2021.
The Montreal-based business jet manufacturer says it has “good grounds” to defend itself against Alstom’s claim.
The French railway company has requested arbitration that could last for several years before the International Chamber of Commerce for alleged “breach of certain contractual provisions.”
Bombardier said when the sale was completed in January 2021 that it intended to challenge some price adjustments that lowered the deal to US$3.6 billion from the earlier estimate of US$4 billion.
It subsequently sold its stake in Alstom obtained with the transaction that was valued at about US$633 million.
Given that Bombardier is subject to confidentiality obligations, it says it won’t comment further on proceedings unless required by applicable law.