BERLIN—Bombardier Inc.'s Berlin-based rail unit is preparing to
float a minority stake by year-end, as it seeks more financial
flexibility and a role in industry consolidation, the unit's chief
operating officer, Lutz Bertling, said Friday.
A final decision on an initial public offering depends on stock
market developments in coming weeks, Mr. Bertling said. The unit,
Bombardier Transportation, could cancel if the market slumps or
peer companies see a steep decline in valuation, he said.
Bombardier Inc., which also makes planes, will retain
significantly more than 50% of the unit, Mr. Bertling said. The
company expects to float the stake in the fourth quarter in
Frankfurt, though the exchange could change.
Earlier this year, Bombardier Transportation said it aims to
play an active part in industry consolidation, and has since been
approached by parties to explore cooperation, said Mr. Bertling,
though he declined to be more specific.
People familiar with the matter this week told The Wall Street
Journal that Bombardier had held early-stage talks with Siemens AG
and other companies about combining their train businesses in the
past.
Thursday, Siemens Chief Executive Joe Kaeser said he recently
met with Bombardier Executive Chairman Pierre Beaudoin but "did not
discuss business" during this meeting. Bombardier executive John
Paul Macdonald confirmed that a meeting took place between Messrs.
Kaeser and Beaudoin.
Mr. Bertling denied being in talks with Siemens over a potential
merger of the two rail businesses, but said it was natural that
executives of different companies meet, for example at events, or
talk about joint projects.
A merger with Siemens' train business could face antitrust
issues, he said.
Bombardier's headquarters are in Canada, while Bombardier
Transportation is based in Berlin.
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