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Bombardier Bonds, Shares Rise as Rail Sale to Alstom Is Signed

French buyer had hinted it would seek discount after writedown
Bombardier says deal close expected in first quarter of 2021

Photographer: Simon Dawson/Bloomberg

By

Sandrine Rastello and

Danielle Bochove

September 16, 2020, 2:58 PM UTCUpdated onSeptember 16, 2020, 4:47 PM UTC

Bombardier Inc. said it will sell its rail unit to French train maker Alstom SA at a lower price than the two sides agreed upon in February, but will close the deal earlier than expected.

The new terms are based on an enterprise value of $8.4 billion for the division, down $350 million, Bombardier said in a statement. The Montreal-based company said it will receive net proceeds of about $4 billion, as much as $500 million less than it expected seven months ago.