Siemens and BombardierThe talk in the last few days is that Siemens and Alstom are going to tie up. This, after talks between Bombardier and Siemens stalled last week.
The nature of the deal is that Siemens will transfer its rail assets to Alstom and then take a majority interest in the combined entity.
There is speculation that this deal is designed to force Bombardier's hand. Bombardier and Siemens had already started to rationalize their rail operations so Siemens would control the signaling operations and Bombardier would control the rolling stock.
Bombardier's management isn't one to give up control, but I believe the more rational tie-up would be between Siemens and Bombardier, with Bombardier and Siemens creating a new combined entity, and Bombardier taking a minority position in the tie-up and pocketing some cash. Both organizations are currently based in Germany so combining their operations would be easier, cultures would be similar.
Maybe Bombardier will see the light, take some capital, reduce their debt and invest in the CS500. That would be a bold, game-changing move.