BERLIN?Bombardier Inc.'s Berlin-based rail unit is preparing to float a minority stake by year-end, as it seeks more financial flexibility and a role in industry consolidation, the unit's chief operating officer, Lutz Bertling, said Friday.
A final decision on an initial public offering depends on stock market developments in coming weeks, Mr. Bertling said. The unit, Bombardier Transportation, could cancel if the market slumps or peer companies see a steep decline in valuation, he said.
Bombardier Inc., which also makes planes, will retain significantly more than 50% of the unit, Mr. Bertling said. The company expects to float the stake in the fourth quarter in Frankfurt, though the exchange could change.
Earlier this year, Bombardier Transportation said it aims to play an active part in industry consolidation, and has since been approached by parties to explore cooperation, said Mr. Bertling, though he declined to be more specific.
People familiar with the matter this week told The Wall Street Journal that Bombardier had held early-stage talks with Siemens AG and other companies about combining their train businesses in the past.
Thursday, Siemens Chief Executive Joe Kaeser said he recently met with Bombardier Executive Chairman Pierre Beaudoin but "did not discuss business" during this meeting. Bombardier executive John Paul Macdonald confirmed that a meeting took place between Messrs. Kaeser and Beaudoin.
Mr. Bertling denied being in talks with Siemens over a potential merger of the two rail businesses, but said it was natural that executives of different companies meet, for example at events, or talk about joint projects.
A merger with Siemens' train business could face antitrust issues, he said.
Bombardier's headquarters are in Canada, while Bombardier Transportation is based in Berlin.