Bombardier exploring all options, including consolidation

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By TESTCustomwebLP TESTCustomwebLP March 23, 2015 19:49

Bombardier exploring all options, including consolidation

After Bombardier Chief Executive Officer Alain Bellemare commented in a February 12 conference call that the Canadian manufacturer is exploring “other initiatives, such as a potential participation in industry consolidation, in order to deleverage the company”, rumours are emerging that the company could sell off assets. The Learjet division and stakes in the rail business have been predicted for the chop by some analysts.

Bombardier is suffering from its debt burden, which currently stands and more than twice its market share. Investors are keen for the manufacturer to sell non-core businesses to help reduce debt and strengthen its credit rating back to investment grade. That said, many don’t see a break up of the company as a possibility due to the influence of its controlling family.

Bombardier has already spent about US$4 billion on the CSeries program to December 31, 2014 and will spend a further US$1.1bn to complete flight tests and start delivering the aircraft later this year.

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By TESTCustomwebLP TESTCustomwebLP March 23, 2015 19:49