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Bombardier shares jump on report of Siemens rail merger talks

A sign outside Bombardier Inc.'s light rail plant in Thunder Bay, Ont. is pictured on Nov. 11, 2014.

Fred Lum/The Globe and Mail

A new report that Bombardier Inc. is in talks to merge its vast trains operations with those of a rival drove the Canadian company's shares up and revived speculation that the train industry is on the verge of consolidation to cure overcapacity problems.

Bombardier shares were up 6.76 per cent in Toronto after Bloomberg, citing anonymous sources, reported that Bombardier and Siemens AG of Germany are in talks to combine their train operations.

Speculation that Bombardier Transportation (BT), as the train division is known, might merge with a European or Chinese competitor is not exactly new. In recent years, rumours of merger or purchase attempts have surfaced every few months. Bombardier itself has said it is open to a deal for the train division, whose headquarters are in Berlin. Story

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Canadian oil producers bank on homegrown push to drive competition

Canadian oil producers are confident in Alberta's oil sands projects as a long-term play, betting that consolidation and a homegrown focus will drive down operating costs and make the industry more competitive as foreign players retreat.

Brian Ferguson, chief executive officer of Cenovus Energy Inc., which last month announced a $17.7-billion deal for ConocoPhillips Co.'s oil sands holdings and other Canadian assets, told reporters Tuesday that the pending acquisition gives Cenovus "complete control of our future in the oil sands."

Working in the recent low-oil-price environment has helped Cenovus become more efficient in its cost structure, Mr. Ferguson said. The company is now trying to find more efficiencies by embracing big data and automation. Story


DAILY DEALS

Real Matters Inc. is set to end Canada's two-year drought for information technology IPOs. The Markham, Ont.-based mortgage-services firm filed a preliminary prospectus late Monday to raise an undisclosed sum in an initial public offering on the Toronto Stock Exchange. Story

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ELSEWHERE IN FINANCE

Any significant changes to the corporate structure of Anglo-Australian miner BHP Billiton would need to be consistent with a "national interest" test under the law, the Australian government said on Tuesday. Story

Investors who are suing a group of traders and banks, saying they colluded to fix bond prices, have named four more banks as defendants: BNP Paribas, HSBC, RBC and TD Bank. Story

Opinion: Bill Morneau needs to go 'full U.K.' to solve capital-formation crisis. Story

Company pensions are nearing a tipping point that's poised to send them on a buying spree in the U.S. corporate bond market. Story (Bloomberg)

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