Alstom Is Said in Advanced Talks to Buy Bombardier’s Rail Unit

French train maker Alstom SA is in advanced talks to acquire the rail business of Bombardier Inc., according to people familiar with the matter, as the embattled Canadian firm offloads assets following a costly expansion in aerospace.

Alstom and Bombardier could reach an agreement as early as this week, though talks could still be delayed or fall apart, according to the people, who asked not be named because the information isn’t public. Bombardier, which also makes planes, reports earnings Thursday and has been exploring asset sales to raise much-needed cash.

Alstom could pay about 7 billion euros ($7.6 billion) ...