Breaking up Bombardier could create a revival
Montreal - A breakup may be Bombardier Inc.’s best option for gaining liftoff.
March 23, 2015 By Bloomberg News
Shares of the $3.5 billion maker of planes and high-speed trains have slumped almost 40% in a year, while rivals such as Boeing Co. and Airbus Group NV rallied. Delays and cost overruns and delays on the new CSeries jetliner dragged Bombardier to its first annual loss in almost a decade last year. The company’s debt is more than twice its market value.
Chief Executive Officer Alain Bellemare, who joined Montreal-based Bombardier in February, said this week he’s leaving “all options” on the table. That has some analysts and investors predicting asset sales that could range from the Learjet division for as much as $750 million to a stake in the rail business, which had 2014 revenue of more than $9 billion. | READ MORE
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