According to Bombardier Inc, the move was precipitated by the September 11 terrorist attacks that threw the air transport industry into disarray.

Bombardier Inc participates in the sector through the production of regional business and amphibious aircraft.

The move came following the release of Bombardier Inc's figures for the fiscal year 2003 that showed a net loss of 615 million Canadian dollars for the tax year 2002/2003, compared to a profit of 36 million a year earlier.

Bombardier's Recreational Products division is the most profitable within Bombardier Inc, with profits of 138 million Canadian dollars for the fiscal year 2002/2003 which represents 5.5 % of the sales turnover.

This turnover increased by 25% over the past year, against the Aerospace Division, which declined by 0.3% over the same period.

Jets Marivent's president, Oliver Frols, whose company imports and distributes Bombardier Recreational Products in 13 European countries, hopes to be involved with the new Bombardier company.

After talks with Michael Hade, vice president of Bombardier Recreational Products, and the Bombardier family in Canada, Frols said the family has expressed a strong interest in being involved along with new investors in a standalone Bombardier Recreational Products division.

But Canadian press reports say the family will not be given any advantage over other potential buyers.

Companies know to be interested include motorcycle manufacturer Harley-Davidson and tractor manufacturer, John Deere.

"Our main goal is to continue to strengthen our position in the UK, German, Spanish and Benelux markets with a strategy to increase market share with the appropriate profitability for our company, " said Frols. "In this way we can guarantee our customers a continued increase in the quality of our products and services."

Analysts say the deal is likely to be finalised within in four months.