Bombardier Inc. and French rival Alstom SA have buried the hatchet and will submit a joint bid to supply new transit cars for the Montreal subway's $1.2-billion upgrade.

The rapprochement began in July after Alstom approached its Canadian counterpart.

The companies had been in a legal battle over the prestigious contract after the Quebec government announced in May, 2006, that Montreal's transit authority could begin negotiations with Bombardier to replace 336 subway cars.

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The Quebec Superior Court recognized Alstom Canada's right to tender in January, 2008.

"There's a lot of water that's under the bridge since May, 2006. We believe now that it's time to look forward and be positive," Bombardier spokeswoman Genevieve Dion said.

The deadline for submissions has been delayed to Dec. 12 at the request of the two companies. The trains are scheduled to enter into service between July, 2012, and October, 2014, following test trains running in November, 2011.

The winning bidder will develop the technology and produce cars based on the design developed by the transit authority and its consultants.

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