Montreal-based transportation conglomerate Bombardier is denying a published report that the company is in discussions to merge its rail business with German firm Siemens.

Citing unnamed "people familiar with the matter" the Wall Street Journal reported Wednesday that the two companies are in talks to combine their rail divisions, both of which have fallen on tough times.

Bombardier shares recently slumped to their lowest level since 1993 on the TSX after more delays on its CSeries jets and waning demand for its other planes. Siemens, meanwhile, is set to report earnings on Wednesday that analysts expect will show a profit decline of about 25 per cent.

Earlier this year, Bombardier CEO Alain Bellemare said the company was considering either a joint venture or partial sale of the rail unit, but ruled out an outright sale. "The transportation division is not for sale," Quebec's economy minister Jacques Daoust said.

Bombardier poured more cold water on the rumours on Wednesday telling CBC News via email that there is no deal in the offing.

"Last May we initiated a potential IPO to raise money and that we are also exploring strategic options," Isabelle Rondeau told CBC News in an email. "Strategic options means we are in many discussions, with many companies. We are not in discussions with Siemens."

Siemens spokesman Alexander Becker said the company doesn't comment on speculation.