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Alstom will argue “negative and unforeseen developments” in the negotiations

Alstom, the French railway giant, intends to use the latest “negative and unplanned” financial information from Bombardier Transport in its future discussions with a view to its acquisition.

Last February, Alstom confirmed its interest in buying the rail division of the Quebec group Bombardier.

On Monday, in a press release, Alstom said it maintained “its strong conviction in the strategic rationale of the acquisition of Bombardier Transport”, adding that it “is confident in its ability to restore the profitability and commercial performance of companies in the medium term. activities ”of it.

However, the French company says it has examined the latest financial results published by Bombardier last week which underline, according to it, “negative and unplanned developments regarding Bombardier Transport, which is currently facing difficulties, particularly with regard to information. available in advance of the announcement, on February 17, 2020, of the proposed acquisition of Bombardier Transport by Alstom ”.

In particular, Bombardier Transportation’s revenues fell 33% in the second quarter ended June 30, from US $ 2.2 billion last year to US $ 1.5 billion this year. During the second quarter, Bombardier’s transportation division also had to record an additional charge of US $ 435 million. This charge, Bombardier said last week, is “largely related to additional engineering, certification and modification costs associated with a number of projects nearing completion, primarily in the UK and Germany. “.

On Monday, Alstom indicated that it “will take into account the consequences of these financial and operational developments during future discussions with Bombardier Inc., and that it will keep the market informed, if necessary”.

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