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China HSR News And Information: Original Translation

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Bombardier snubs Chinese buy offer
Source: Agencies | September 10, 2015, Thursday |

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A man looks underneath an Innovia Monorail 300 train by Bombardier at a railway technology trade fair in Berlin in this file photo. Canada’s Bombardier has turned down a Chinese offer to buy up to 100 percent of its prized rail unit, underscoring its reluctance to cede control of the unit to a Chinese buyer at this juncture.— Reuters

CANADA’S Bombardier has turned down a Chinese offer to buy up to 100 percent of its prized rail unit, documents seen by Reuters show, underscoring its reluctance to cede control of the unit to a Chinese buyer at this juncture.

Beijing Infrastructure Investment Co (BII), a state-owned company that operates 18 metro lines in China’s capital, has offered to acquire between 60 and 100 percent of Bombardier Transport, an August 14 letter outlining BII’s offer showed.

Bombardier, which is looking to raise cash by listing a minority stake in its transport unit later this year, is attractive to Chinese players like BII, which, encouraged by the Chinese government, are seeking to acquire leading foreign technology to grow their businesses and global footprint.

Selling a majority stake would, however, expose Bombardier to political pressure in its home province of Quebec, where it generates high-paying jobs that could be lost through a takeover by a foreign buyer at a time when Canada’s economy has slipped into recession.

In the letter addressed by BII Chairman Tian Zhenqing to Bombardier’s Executive Chairman Pierre Beaudoin and not yet disclosed to the market, BII put the unit’s enterprise value — calculated as equity plus debt — at US$7-8 billion.

But Bombardier’s Vice President for Mergers and Acquisitions Louis Veronneau, who was copied in the non-binding offer, rejected the proposal in a letter to Tian one week later.

“We are not exploring a transaction involving a majority stake at this juncture,” Veronneau wrote back on August 21.

Excluding debt, analysts and bankers have pegged the equity value of the transportation division at about US$5 billion. Much of the company’s value currently resides in its transport business as its aerospace division has been hurt by delays and cost overruns tied to its C-Series line of commercial jets.

At Tuesday’s close, Bombardier shares had fallen 70 percent this year, and the company’s market capitalization sits at about US$2 billion, well below the equity value of the transportation unit, reflecting the struggles at its aerospace business and heavy debt load.

“BII and BT (Bombardier Transport) will have an incomparable synergetic relationship, and the combination will create a globalized world-class rail industrial group running the whole industrial chain,” Tian wrote, adding that he would keep management teams intact.

Tian said BII planned to fund the acquisition with cash reserves and possibly debt.



@Jlaw :)

Canadians are biased and a bit racist against Chinese purchase of any of their companies. They are still living in the 50s, it's commies vs. democracy. :crazy: In this case I'm not surprised since their main HQ is in Quebec, a mainly bastardized French speaking province. A little background about Quebec. They receive subsidies from other provinces each year because that province is like the black sheep of the Canadian family. Their motto is **** work, play hard and spend a lot, lol.

Anyways, their share price in CAD is $1.47/share. I own their shares 7 years ago at $7-9/share. Glad I sold it a long time ago.

Question is, are their trains world class? Because the trains they built locally are not that great.
 
Canadians are biased and a bit racist against Chinese purchase of any of their companies. They are still living in the 50s, it's commies vs. democracy. :crazy: In this case I'm not surprised since their main HQ is in Quebec, a mainly bastardized French speaking province. A little background about Quebec. They receive subsidies from other provinces each year because that province is like the black sheep of the Canadian family. Their motto is **** work, play hard and spend a lot, lol.

Anyways, their share price in CAD is $1.47/share. I own their shares 7 years ago at $7-9/share. Glad I sold it a long time ago.

Question is, are their trains world class? Because the trains they built locally are not that great.
Low speed is ok(pressure tightness sucks, but cheap), i mean less than 200km/h. Its new CRH380D(350km/h) manufactured by Sifang-Bombarider joint venture only won a neglectable proportion of the new purchase plan.
@cirr Any number?
 
307km-long 350km/h Chongqing-Chengdu HSR in trial run
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The Chengdu–Chongqing Intercity Railway is a 307-kilometre (191 mi) long high-speed railway that will connect the cities of Chengdu (Sichuan) and Chongqing in southwestern China, with a planned maximum speed of 350 km/h. The route will pass through most of the same cities that the older Chengdu–Chongqing Railway does, but will be significantly shorter due to the greater use of elevated sections and tunnels. It is expected to reduce travel time between Chengdu and Chongqing to 75 minutes, 45 minutes quicker than the current CRH route via Suining. The line will include four major elevated sections and two tunnels.

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307km-long 350km/h Chongqing-Chengdu HSR in trial run
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The Chengdu–Chongqing Intercity Railway is a 307-kilometre (191 mi) long high-speed railway that will connect the cities of Chengdu (Sichuan) and Chongqing in southwestern China, with a planned maximum speed of 350 km/h. The route will pass through most of the same cities that the older Chengdu–Chongqing Railway does, but will be significantly shorter due to the greater use of elevated sections and tunnels. It is expected to reduce travel time between Chengdu and Chongqing to 75 minutes, 45 minutes quicker than the current CRH route via Suining. The line will include four major elevated sections and two tunnels.

View attachment 255588

Another piece of the jigsaw in place。Great going。:enjoy:
 
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