Brenda O’Farrell
Investing.com – Shares of Bombardier were stepping back Wednesday from the gains made one day earlier. Trading down more than 3.2%, the Quebec-based train and plane manufacturer continues to be in the spotlight following news it is seriously considering selling its business jet unit.
According to a report in The Wall Street Journal on Tuesday, Bombardier is reportedly in talks with Textron Inc (NYSE:TXT)., the U.S. company that makes Cessna jets. Textron also controls a number of subsidiaries, including Arctic Cat, Bell Helicopter and Textron Aviation. The sale of Bombardier’s plane division would allow the company to reduce its debt, which totals in the billions of dollars.
On Tuesday, Bombardier stocked gained 15% at the close.
Earlier this year, Bombardier warned of a possible writedown involving its partnership with Airbus.
In the last year, Bombardier stock has lost about 34%. It hit a peak in 2019 of $2.80, far from its high in 2018 of $5.20.
Shares of Textron (NYSE:TXT), meanwhile, close up yesterday, gaining 9.98% on the day. So far today, the stock is trading almost even at US$50.92, maintaining its previous day’s gain. In the past year, Textron stock has lost 5.14%.