UPDATE 1-Bombardier to write off $164 mln Metronet stake
(Changes dateline, previous TORONTO. Adds details, background. In U.S. dollars)
MONTREAL, July 16 (Reuters) - Bombardier Inc. (BBDb.TO) said on Monday it would write off its investment in Metronet Rail BCV Ltd., resulting in a $164 million charge in the second-quarter of fiscal 2008.
The move follows an arbitrator's decision earlier in the day that ruled the London Underground, which runs the city's subway, should pay Metronet an extra 121 million pounds ($246 million), well short of what the contractor had requested.
Metronet, which is owned by WS Atkins ATK.L, Balfour Beatty BBY.L, Bombardier, EDF Energy (EDF.PA) and Thames Water MBL.AX, had asked for 551 million pounds of extra money over the next 12 months. Bombardier's class B shares fell 8 Canadian cents, or 1.2 percent, to C$6.56 on the Toronto Stock Exchange shortly after the open on Monday.
Bombardier, the world's largest train maker and No. 3 manufacturer of civil aircraft, said its $6.7 billion turnkey supply contracts with Metronet for new trains, signaling, refurbishment of trains and fleet maintenance, were progressing well.
The Canadian company said it remained committed to delivering a world class, safe and reliable Tube for London.
($1=$1.05 Canadian)
(Additional reporting by Scott Anderson in Toronto)
((Reporting by Robert Melnbardis; Editing by Bernadette Baum; e-mail robert.melnbardis@reuters.com; Reuters Messaging :robert.melnbardis.reuters.com@reuters.net; 514-985-2434)) Keywords: BOMBARDIER METRONET/
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