RE:RE:BTNothing wrong with Alstom and their offer really except that Bombardier was not in a situation to wait 18 months for something that might not happen ($75M break fee, hello?) The market understood this and pummelled the share price. Who in this world is in a position to wait 18 months? Not many. Certainly not Bombardier. Well wait, CDPQ actually.
What it has done though is freeze Bombardier from doing any other deals. There is a huge opportunity cost to that.
Also, I don't see why they can't take the Hitachi high speed JV out of the deal. Adjust the %, get some cash. Alstom will have to sell it anyway per EU. Adjust the selling price accordingly...
PS - LOL, anything else they want to keep, find a willing regulator or a competitor to block the sale of the local asset...lol
bbdaerospacecnd wrote: Imo, BBd should keep couple rail divisions that they are best at (VHS trains and monorails + some profitable partnerships like in China/India) and sell others piece by piece to the highest bidder in their monstrous portfolio of 60 countries.
market will love it as it provides excellent diversification to bizjets.
BBd should stop being a hostage victim at the mercy of Alstom.
bbdaerospacecnd wrote:
Btw, GreenEyes, that deal with Hitachi was announce a couple days ago and BBd alluded to it on Aug 6 as undisclosed customer.
BBD BT is prsent in 60 countries so they could streamline their operations to 40 countries and stick
to what that they are good at in case Alstom tries to run them over in the "renewed talks".
it's better to have a plan B and be prepared to all possible outcomes. Alstom now has an upper hand
in the game and BBd needs some ammunition to fight back.
Bbd's Zefiro platform for high speed trains
is a huge sacrifice in Alstom deal for bbd and they better be sure that the deal is written in stone before transferring the IP and the licence to Hitachi.