UPDATE 1-Bombardier should consider deal with China's CRRC -Caisse CEO

TORONTO, Nov 1 (Reuters) - Bombardier Inc should look at all options for its transportation business including partnering with China's state-owned CRRC, one of Bombardier's biggest shareholders said on Wednesday.

"I think we have to look at everything. Every opportunity that comes up ought to be looked at," Caisse de depot et Placement du Quebec Chief Executive Michael Sabia told reporters when asked about a deal with CRRC.

Germany's Siemens and France's Alstom announced a merger of their train manufacturing operations in September. That would leave Bombardier competing in a market dominated by CRRC, the world's largest train maker, and a combined Siemens and Alstom group, which would be the second biggest.

Sabia said Bombardier should consider a partnership with CRRC rather than selling the business to the Chinese.

"I think the transportation business is a long-run asset of Bombardier. I don't see an opportunity or reason to go down the sale path," he said. (Reporting by Matt Scuffham; Editing by Jeffrey Benkoe and Steve Orlofsky)