MILAN Shares in Siemens (SIEGn.DE) spiked higher to hit a fresh record high after a Bloomberg report said the German industrial giant and Bombardier (BBDb.TO) are in talks to combine their train operations.
People familiar with the matter cited by the news agency said the possible venture would merge their train-making and signalling activities valued at more than 10 billion euros (8.52 billion pounds).
A Milan based trader said the deal appeared to make strategic sense, noting that Bombardier is the only player not integrated while Siemens has already an integrated offer.
Siemens declined to comment.
(Reporting by Danilo Masoni and Jens Hack)