The Globe and Mail reports in its Monday edition that Bombardier will shrink by half after formally announcing the sale of its rail division to France's Alstom SA. The Globe's Nicolas Van Praet and Eric Reguly write that the wholesale retreat from streetcars to high-speed trains means that Bombardier will exist only as a maker of private business jets. Bombardier Transportation (BT), as the train division is known, is not giving up all of its Canadian roots: The Caisse pension fund, which owns 32.5 per cent of BT, has agreed to become a significant shareholder in the enlarged Alstom. Alstom, whose headquarters are in Paris, and Bombardier, announced the train merger late on Monday, though the deal was widely expected. Bombardier also confirmed that its business jets unit is no longer for sale. Alstom put the price of buying 100 per cent of BT at 5.8 billion to 6.2 billion euros, to be paid through a mix of cash and new Alstom shares. The Caisse will sell its share of BT for two billion euros and invest the proceeds, plus another 700 million euros, for an 18-per-cent stake in the new Alstom, making it the French company's single largest shareholder in what will be the world's second-biggest train maker, after China's CRRC.
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