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Daimler sells rail unit
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August 4, 2000: 7:27 a.m. ET
Adtranz division sold to Canada's Bombardier for $720M in cash
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LONDON (CNNfn) - DaimlerChrysler AG agreed Friday to sell its Adtranz rail systems division to Canadian transportation conglomerate Bombardier Inc. for  790 million ($725 million) in cash as part of its strategy to eliminate all non-automotive holdings.
The deal also includes about 261 million ($237 million) in debt, according to a report in Friday's Wall Street Journal.
Montreal-based Bombardier and DaimlerChrysler have long been in talks about the sale of Adtranz. Speculation about a potential deal pushed Bombardier stock to a 12-month high in Canada on Thursday before Toronto Stock Exchange halted trading in the shares.
DaimlerChrysler shares edged up nearly 1 percent to 57.50 in midday trading Friday in Germany.
Adtranz had sales of 3.6 billion ($3.4 billion) last year. Sales are expected to rise to about 5 billion euros by 2002. 
-- from staff and wire reports
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