Bombardier Seen Out of Rail Venture

Aerospace and transport technology firm Bombardier has pulled out of talks to acquire a stake in railway engineering firm Transmashholding, Russian Railways head Vladimir Yakunin said in comments published Thursday.

Bombardier's board had balked at the asking price for Transmashholding, Yakunin said, Kommersant reported. Russian Railways is a major shareholder in Transmashholding.

"For Bombardier, the high price of the holding came as a surprise," Yakunin said.

Transmashholding could now begin discussions with engineering majors Siemens of Germany and Alstom of France, he added.

Yakunin made the comments after talks with Pierre Beaudoin, the executive director of Bombardier, on the sidelines of the InnoTrans transport showcase in Berlin.

In 2007, Bombardier had a joint venture to develop locomotives with Transmashholding, which Ernst & Young valued at $2.38 billion to $2.9 billion at the beginning of this year, the report said.