{"id":62555,"date":"2015-10-07T12:43:06","date_gmt":"2015-10-07T16:43:06","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=62555"},"modified":"2016-04-02T23:34:28","modified_gmt":"2016-04-03T03:34:28","slug":"bombardier-shares-surge-on-report-it-approached-airbus-to-buy-cseries-stake","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2015\/10\/07\/bombardier-shares-surge-on-report-it-approached-airbus-to-buy-cseries-stake\/","title":{"rendered":"Bombardier shares surge on report it approached Airbus to buy CSeries stake"},"content":{"rendered":"
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MONTREAL \u2013 Stock in financially strapped Bombardier surged following a news report that the Montreal-based plane maker has approached Airbus to sell a majority stake in its CSeries jet.<\/p>\n

The transportation company\u2019s shares (TSX:BBD.B) closed up almost 15 per cent to $1.77 Tuesday on the Toronto Stock Exchange after Reuters reported that the European aircraft builder would help Bombardier complete development of the 110- to 160-seat aircraft in exchange for a controlling stake in the program.<\/p>\n

In a statement Tuesday night, Bombardier confirmed that \u201csuch discussions occurred,\u201d but said they are \u201cno longer being pursued.\u201d<\/p>\n

\u201cBombardier will continue to explore initiatives such as a potential participation in industry consolidation,\u201d the company said.<\/p>\n

Richard Aboulafia of the Teal Group said it would be highly unusual for a seller to approach a potential buyer, especially one that has tried to kill a rival aircraft program.<\/p>\n

\u201cIt\u2019s either not real or very desperate,\u201d he said in an interview.<\/p>\n

The US$5.4-billion CSeries program is billions of dollars over budget and a couple of years late and it hasn’t attracted a new firm order for the plane in more than a year.<\/p>\n

So far Bombardier has just 243 firm orders for the CS100 model that is scheduled to be certified this year and enter into service by mid-2016.<\/p>\n

Meanwhile, Aboulafia said aerospace manufacturers have unique design philosophies and are loathe to buy other people\u2019s inventions.<\/p>\n

\u201cI don\u2019t know of anyone acquiring anybody else\u2019s jetliner and adopting it as their own,\u201d he said, adding that Boeing eventually shed the 717 after acquiring McDonnell Douglas in 1997.<\/p>\n

He said a Chinese partner would probably make more sense for Bombardier given its desire to pierce that market for the CSeries, but that it may not have received a receptive response.<\/p>\n

Scotiabank analyst Turan Quettawala said this week that Bombardier could need cash by mid-2016 for the larger CS300 and to develop its new Global 7000\/8000 business jet if orders don\u2019t improve.<\/p>\n

The company is already looking at selling a minority stake in its railway products division.<\/p>\n","protected":false},"excerpt":{"rendered":"

MONTREAL \u2013 Stock in financially strapped Bombardier surged following a news report that the Montreal-based plane maker has approached Airbus …<\/p>\n","protected":false},"author":33,"featured_media":62556,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[35],"class_list":["post-62555","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-original","mauthors-ross-marowits","mauthors-the-canadian-press"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/62555","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=62555"}],"version-history":[{"count":0,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/62555\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/62556"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=62555"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=62555"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=62555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}