Brenda O’Farrell
Investing.com – Shares of Bombardier Inc. were up more than 16% in early afternoon trading Tuesday after media reports surfaced that the Quebec-based plane- and train-maker was in negotiations to sell its business jet division.
According to a report in the Wall Street Journal, Bombardier has been in talks with Textron Inc (NYSE:TXT)., the U.S. company that manufactures Cessna jets.
The sale of the division would allow Bombardier to reduce its debt, which totals in the billions of dollars.
Spokespeople with both companies refused to comment, however, speculation has swirled that Bombardier is seriously exploring the options of selling both its rail division as well as its aviation business.
Shares of Bombardier climbed in value since the news was first reported Tuesday, trading at $1.43 at 1:30 p.m., up from the previous day’s close of $1.30. In the last year, the stock has lost about 34%. It hit a peak in 2019 of $2.80, far from its peak in 2018 of $5.20.