Advertisement

Bombardier vows to fight Alstom claims on railway deal at international arbitration

Flags fly outside a Bombardier plant in Montreal on May 14, 2015. Ryan Remiorz/The Canadian Press

Bombardier Inc. says it intends to “vigorously” fight claims by Alstom S.A. relating to the sale of its transportation operations in early 2021.

The Montreal-based business jet manufacturer says it has “good grounds” to defend itself against Alstom’s claim.

The French railway company has requested arbitration that could last for several years before the International Chamber of Commerce for alleged “breach of certain contractual provisions.”

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

Get daily National news

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

Bombardier said when the sale was completed in January 2021 that it intended to challenge some price adjustments that lowered the deal to US$3.6 billion from the earlier estimate of US$4 billion.

Story continues below advertisement

It subsequently sold its stake in Alstom obtained with the transaction that was valued at about US$633 million.

Given that Bombardier is subject to confidentiality obligations, it says it won’t comment further on proceedings unless required by applicable law.

Click to play video: 'Bombardier to sell train unit to Alstom in US$8.2-billion deal'
Bombardier to sell train unit to Alstom in US$8.2-billion deal

Sponsored content

AdChoices