April 11, 2017 / 6:19 PM / 6 months ago

BUZZ-Siemens, Bombardier rise on train JV talks; Alstom slips

(Updates, adds RBC analyst commentary)

** Siemens shares close up 0.4 pct after hitting record high on talk that Siemens & Canada’s Bombardier are pursuing a deal to combine train operations, sources told Reuters

** Talks are “pretty far advanced,” said one source, who asked not to be named because negotiations are confidential

** Proposed JV could be valued anywhere between $14-$27 bln, based on multiples of listed peers

** Siemens and Bombardier declined to comment, as did pension-fund Caisse de depot, which owns 30 pct of Bombardier’s train business

** Bombardier shares currently up 4.5 pct in Toronto

** RBC analyst Walter Spracklin wrote in note to clients, that though details are lacking, he views a combination of the two positively

** Spracklin cites shared expertise of industry leaders, potential cost savings and improved competitive positioning, especially against lower-cost Chinese cos that are beginning to reach beyond their own borders

** Shares of French train maker Alstom, a competitor of Siemens and Bombardier, closed 2.8 pct lower in day’s session on the news

** Alstom teamed up with Bombardier on a French rail contract earlier this year

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