Alstom, Siemens rail-merger talk leaves Bombardier out in the cold

London

ALSTOM said it's in talks with Germany's Siemens about a possible combination of their rail businesses, a tie-up that would bring together two former European arch-rivals and leave Canada's Bombardier Inc exposed to cut-throat competition from China.

The boards of Siemens and Alstom are scheduled to meet this week to approve the deal, which may be announced as early as Tuesday, according to people familiar with the matter, who asked not to be identified because the talks are private. The German company would transfer its rolling material and signalling businesses to its French counterpart in exchange for a stake of about 50 per cent in the enlarged Alstom, said the people.