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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

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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.