Bombardier scraps Russian train maker deal: report

MOSCOW (Reuters) - Aerospace and transport technology firm Bombardier (BBDb.TO: Quote) has pulled out of talks to acquire a stake in Russian railway engineering firm TransMashHolding, Kommersant newspaper reported on Thursday.

Citing the head of Russian Railways, a state-owned rail monopoly and a major shareholder of TransMashHolding, the paper reported that Bombardier's board had balked at the asking price of the Russian firm.

"For Bombardier, the high price of the holding came as a surprise," said Vladimir Yakunin, chief executive officer of Russian Railways, Kommersant reported.

TransMashHolding could now begin discussions with engineering majors Siemens (SIEGn.DE: Quote) of Germany and Alstom (ALSO.PA: Quote) of France, Yakunin told the business daily.

Yakunin spoke to Kommersant 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 $2.38-2.9 billion at the beginning of this year, the paper said.

In November of last year Bombardier, the world's third-largest producer of civil aircraft, was in talks to by into TransMashHolding as early as 2008. No details were revealed.

A firm deadline of October 1, 2008 had been set to finalize the deal, Kommersant said on Thursday.

(Writing by Simon Shuster; Editing by Paul Bolding)