Bombardier in talks to sell business-jet unit to Textron

 Canada’s Bombardier Inc BBdB.TO is in talks to sell its business-jet unit to U.S. maker of Cessna jets, Textron Inc (TXT.N), the Wall Street Journal reported here, citing people familiar with the matter.

The move will help the struggling Canadian train and plane maker to pare its billion of dollars in debts, the report said.

Bombardier’s shares have plunge more than 30% so far this year. On Jan 16, it flagged a 2019 profit warning, citing problematic rail contracts, as well as warned of a potential write down in the value of a plane partnership with Europe’s planemaker Airbus (AIR.PA).

Bombardier declined comment on the WSJ report, but a source familiar with the company’s thinking told Reuters it was holding talks over both rail and aviation assets to keep all its options open.

Textron also declined to comment.

Shares of Textron rose more than 9%, while those of Bombardier’s were up over 10%.