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A potential Airbus-Bombardier tie-up is off

Source: Airbus

Airbus quashed expectations of a possible tie-up with Bombardier late on Tuesday, hours after it was reported that the latter had offered Airbus an investment into its CSeries jet program.

In an official statement after Tuesday's market close, Airbus acknowledged it had been exploring business opportunities with the Canadian plane maker but said "such discussions are no longer being pursued," adding that it would refrain from further comments.

Earlier on Tuesday, media outlets reported that Bombardier had asked Airbus for help on completing its troubled CSeries aircraft in exchange for giving Airbus a controlling stake in Bombardier.

Such a deal would have ended the Canadian company's independent effort to get into the lower end of the global plane market that is currently dominated by Airbus and Boeing, Reuters reported.

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Analysts said that would help the Toronto-listed company as it struggles with dwindling cash reserves.

Shortly following Airbus' statement, Bombardier said it would continue to "explore initiatives, such as a potential participation in industry consolidation," according to Reuters.

Bombardier shares ended Tuesday 15 percent higher, and all eyes will be on how the stock fares on Wednesday's open.