MONTREAL (CP) -- Bombardier Inc. has ended talks to buy a stake in Russian railway locomotive manufacturer Transmashholding, apparently because of a disagreement over the price of such a deal.
Bombardier spokesman David Slack confirmed Thursday that the transportation giant is no longer in talks with Transmashholding but declined to discuss specifics of negotiations.
He wouldn't comment on a Russian newspaper's report that the price of the transaction was the source of contention.
"As in the past we can't speak to specifics or react to reports in the press. But what I can say is that we are not in active discussions on the opportunity that was outlined in today's press," Slack said in a telephone interview from Europe.
The newspaper Kommersant reported that Transmashholding will now hold talks with Alstom of France and Siemens of Germany, two large industrial conglomerates with major rail divisions.
"Bombardier was surprised at the high price of the holding," said the president of OAO Russian Railways, Vladimir Yakunin, according to Kommersant's online edition.
Talks between the Russian company and Bombardier, the world's largest supplier of rail equipment, began the end of last year. Bombardier chief executive Pierre Beaudoin participated in negotiations in Berlin at the InnoTrans exhibition.
Transmashholding is owned by Dutch Breakers Investments, which is owned by Iskander Makhmudov, Andrey Bokarev, TransGrupp AS and Russian Railways.
Bombardier had a joint venture to develop locomotives with Transmashholding. Ernst & Young valued the joint venture at $2.38 billion to $2.9 billion, the paper said.
Talks initially focused on an exchange of assets between Breaker Investments and Bombardier. But it eventually turned into a simple purchase of Breaker Investment shares by Bombardier, it said.
On the Toronto Stock Exchange, Bombardier shares traded at $6.11.