(Reuters) - Bombardier Inc (BBDb.TO) has hired a TD Securities (TD.TO) investment banker to oversee the initial public offering of a minority stake in its rail unit, Bombardier Transportation, and any other sales or acquisitions, the company said on Thursday.
Louis Véronneau will take the title of vice president, mergers and acquisitions. He will start immediately and report to Chief Executive Alain Bellemare, the Canadian plane and train manufacturer said.
“This hire particularly does not suggest anything new,” Macquarie Securities analyst Konark Gupta said. “I think they have always considered all their options. They have only publicly disclosed the BT IPO, but I‘m sure they are looking at the entire portfolio.”
In February, Bombardier announced that Steven Ridolfi, its senior vice president for strategy and mergers and acquisitions, would retire after 32 years with the company.
The company said Véronneau will oversee partnerships, joint ventures, mergers, acquisitions and divestitures, as well as the IPO, which it announced last month.
The offering will raise funds to shore up Bombardier’s balance sheet as it brings its new CSeries jet into service. It is aiming to certify the plane this year, after years of delays and cost overruns.
Bombardier shares were down 2.3 percent at C$2.54 on the Toronto Stock Exchange.
Reporting by Allison Martell; Editing by Alan Crosby and Paul Simao