PARIS (Reuters) - French train maker Alstom (PA:ALSO) said on Monday it has launched a capital increase of around 2 billion euros ($2.37 billion) to finance the acquisition of Bombardier Inc 's (TO:BBDb) rail business.
The capital increase will allow shareholders that own 10 preferential subscription rights to subscribe for three new shares at 29.50 euros per share, Alstom said in a statement.
The company said it expects to close the acquisition of Bombardier's rail unit in the first quarter of next year.
French conglomerate Bouygues (PA:BOUY), which owns 9.7% of Alstom, has committed to participate in the rights issue, the company said in a statement.
Alstom in September lowered its offer for the business.
The two companies announced revised terms of an agreement which gives the rail unit an enterprise value of $8.4 billion, in a deal that would allow the cash-strapped Canadian firm to pay down some of its $9.3 billion in debt.
($1 = 0.8439 euros)