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Gold/Mining/Energy : Bombardier, maker of planes and trains and other things -- Ignore unavailable to you. Want to Upgrade?

To: Gilbert Drapeau who wrote (780)	8/4/2000 10:40:34 AM
From: Gilbert Drapeau	Read Replies (1) \| Respond to of 1177

Bombardier Signs a Sale and Purchase Agreement for DaimlerChrysler Rail Systems (Adtranz) MONTREAL, QUEBEC--AUGUST 4, 2000 - 07:19 EDT--Bombardier Inc. today announced it has signed a sale and purchase agreement with DaimlerChrysler AG of Stuttgart, Germany to acquire its subsidiary DaimlerChrysler Rail Systems GmbH (Adtranz), based in Berlin. The transaction is subject to the approval of all appropriate regulatory authorities. The sale and purchase agreement is for a cash consideration of US$725 million (Cdn$1.1 billion) to be paid by Bombardier for DaimlerChrysler Rail Systems (Adtranz). The proceeds from the planned disposal of some of Adtranz's businesses, namely Fixed installations and Signalling, currently in the process of being sold to other parties, would reduce the net purchase price for Bombardier. "The combination of Bombardier Transportation and Adtranz will position the new entity among the industry leaders in all activities related to the production of rail vehicles in world markets," stated President and Chief Executive Officer of Bombardier, Robert E. Brown. "This acquisition would complement our transportation activities in terms of geographical markets, products and services, broader capabilities, expertise and assets. Adding the excellent management and personnel of Adtranz to our own is a very attractive aspect of this transaction. Moreover, a stronger transportation business will improve the balance between Bombardier's core activities which also include aerospace, recreational products and financial services," noted Mr. Brown. Commenting on the purchase by Bombardier, Jürgen Schrempp, Chairman of DaimlerChrysler's Board of Management said: "Having progressively increased Adtranz's performance to a breakeven point, it is now an appropriate time to place Adtranz with a company which values rail activities as one of its core businesses. We feel Bombardier is the company best equipped to take Adtranz into the future." As an integrated transportation equipment manufacturer, Adtranz is present in major markets around the world with 22,000 employees, including 3,600 at Fixed installations and Signalling, and facilities in 19 countries on four continents. Adtranz's revenues for 1999 totalled Cdn$5 billion (US$3.4 billion). Bombardier Transportation currently employs 16,000 people and its revenues for the fiscal year ended January 31, 2000 reached Cdn$3.4 billion (US$2.3 billion). According to Bombardier Transportation President and Chief Operating Officer, Jean-Yves Leblanc : "The coming together of our two entities will benefit customers as it will allow us to offer a full range of state-of-the-art products and services. Our access to complementary technologies, such as propulsion systems, train control and communications systems and electric locomotives, will enhance our ability to compete vigorously in all markets." "Combining the valuable expertise and the capabilities of Adtranz with our own will enable the new organization to be a full-fledged player in the worldwide rail industry, with a manufacturing presence in 23 countries," he added. Bombardier Inc., a diversified manufacturing and service company, is a world leading manufacturer of business jets, regional aircraft, rail transportation equipment and motorized recreational products. It is also a provider of financial services and asset management. The Corporation employs 56,000 people in 12 countries in North America, Europe and Asia, and more than 90 % of its revenues are generated outside Canada. Bombardier's revenues for its fiscal year ended Jan. 31, 2000 totalled $13.6 billion Cdn ($9.1 billion US).