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Bombardier Inc., the embattled Canadian train and plane maker, is exploring a combination of its rail business with French rival Alstom SA, according to people familiar with the matter.

The two companies have held preliminary talks about a rail deal in the past few months, said the people, who asked not to be identified because the discussions are private. Representatives for Alstom and Bombardier declined to comment.

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Bombardier rose as much as 4.9 per cent in trading in Toronto Tuesday. The shares were up 4.1 per cent at 3:11 p.m., giving the company a value of $3.13 billion (US$2.39 billion).

The latest considerations between Bombardier and Alstom could face antitrust scrutiny, and there’s no certainty they will lead to a transaction, the people said. A rail deal is among several options the Canadian company is exploring to stabilize its portfolio, which also includes business jets, they said.