China’s high-speed rail manufacturer CRRC Corp denied media reports that it plans to buy the railway business of Canadian transportation company Bombardier. Neither CRRC nor its subsidiaries have had plans to make such an acquisition, the company said in a statement to the Shanghai Stock Exchange.
The statement came after media reports that a plan announced by CRRC to purchase the stocks of a Hong Kong-listed company would pave the way for acquiring Bombardier’s railway business. CSR (Hong Kong), a CRRC subsidiary, intends to subscribe 6.5 billion new stocks that may be issued by China Properties Investment Holdings at a price of HK$0.10 (US$0.013) per share in cash.
The announcement triggered speculation that CRRC might use China Properties Investment Holdings as a shell company to increase financing for investment in Bombardier.