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Bombardier pursues options for aerospace division; no deal imminent -sources

Published 2017-10-16, 10:11 a/m
© Reuters.  Bombardier pursues options for aerospace division; no deal imminent -sources
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MONTREAL, Oct 16 (Reuters) - Canada's Bombardier Inc BBDb.TO is continuing to look at strategic options for its aerospace division but no deal is imminent, people familiar with the matter told Reuters on Monday.

As part of that process, the Canadian train-and-plane maker has held informal talks with Chinese companies among others, but the sources played down the chances of Europe's Airbus AIR.PA being a likely partner.

On Sunday, Bloomberg reported that Bombardier was considering disposal of aerospace assets including its Q400 turboprop and CRJ regional-jet unit, while looking at partnerships with other aerospace companies, with Airbus among the prospective buyers. talks with Chinese companies is aimed delivering an investment in the company's 110 to 130 seat CSeries jets and improving the aircraft's sales through better access to the fast-growing Chinese aviation market, two sources familiar with the matter told Reuters earlier this autumn.

But those talks have been complicated, among other reasons, by the agendas of various stakeholders, including the Quebec provincial government, which owns a 49 percent stake in the plane program.

Bombardier shares were up 1.7 percent at C$2.37 in early morning trades, while the benchmark Toronto share are index was up 0.4 percent.

Bombardier's aerospace division has been under pressure because of lackluster demand for its turboprops and regional jets, and more recently because of a trade dispute with U.S. planemaker Boeing (NYSE:BA) Co BA.N over the CSeries.

Bombardier was not immediately available for comment on Monday, and had declined to comment on Sunday. Airbus declined to comment.

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