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Alstom Signals Bombardier Rail Arm Losses to Affect Takeover (2)

Aug. 10, 2020, 1:52 PM

Alstom SA hinted that it may seek better terms for its 6.2 billion-euro ($7.3 billion) purchase of Bombardier Inc.’s train arm after the Canadian company reported a second-quarter loss on writedowns at the unit.

The earnings announcement on Aug. 6 turned up unexpected financial and operational performance issues, especially when compared with information available prior to the February takeover deal, Alstom said in a statement Monday.

The French company said the transaction still makes sense, though it will take the developments into account in talks with Bombardier and update the market if needed.

A train, manufactured by Bombarider Inc., sits in Derby, U.K.
Photographer: Simon Dawson/Bloomberg

Alstom would almost double its ...