Exclusive: Canada's Bombardier explores options for rail business - sources

[April 10, 2015] By Pamela Barbaglia, Freya Berry and Sophie Sassard

LONDON (Reuters) - Bombardier is exploring options to monetize its transportation unit potentially worth up to $5 billion, as the Canadian group seeks to offset challenges within its aircraft business, six sources familiar with the matter said.

The world's largest manufacturer of planes and trains is working with banks on strategic options for its transportation arm, which provides rail vehicles, signaling and control equipment, the sources said on Friday.

Options would include a possible sale of all or part of the business, as well as an initial public offering (IPO) to retain Bombardier's exposure to the healthier half of the business, three sources said, declining to be named since the matter is private.

(The story fixes typographical error in final paragraph)

(Additional reporting by by Robert Smith at IFR, Arno Schuetze in Frankfurt and Allison Lampert in Montreal; Editing by Sinead Cruise in London)

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