Alstom launches a 2 billion euro capital hike to finance Bombardier deal

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French train maker Alstom said on Monday it has launched a capital increase of around 2 billion euros ($2.37 billion) to finance the acquisition of Bombardier Inc's rail business.

The capital increase will allow shareholders that own 10 preferential subscription rights to subscribe for three new shares at 29.50 euros per share, Alstom said in a statement.

The company said it expects to close the acquisition of Bombardier’s rail unit in the first quarter of next year., which owns 9.7% of Alstom, has committed to participate in the rights issue, the company said in a statement.The two companies announced revised terms of an agreement which gives the rail unit an enterprise value of $8.4 billion, in a deal that would allow the cash-strapped Canadian firm to pay down some of its $9.3 billion in debt.

 

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Did the ECB buy any bonds to finance any government buy ins. ie subsidy (such a dirty word)

thank you very much for your work

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