No flight of fancy

30 April 2015 By Robert Cyran Follow @rob_cyran

The manufacturer is mulling selling a majority stake in its rail unit to a Chinese rival. Political objections are likely: even home-improvement chains are off limits to foreigners. Using the proceeds to keep its aviation business flying, though, may keep critics in the hangar.

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China’s two largest train producers have been in discussions with Bombardier about the possibility of buying a controlling stake in its rail unit, according to Reuters. CNR and CSR would not make an official move until they complete their own planned $26 billion merger next month.

Bombardier’s rail unit is headquartered in Germany and has about 40,000 employees, about 10 percent of whom are Canadian. A transaction would require the approval of Canadian regulators.

Bombardier’s shares have fallen 40 percent this year after delays and cost overruns in development of its new CSeries jets.

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