Bail out for Bombardier?

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By admin October 29, 2015 21:17

Bail out for Bombardier?

Although the Quebec government in Canada has declined to confirm if the published reports are true that it will provide a financial contribution to Bombardier to boost its cash levels, the manufacturer’s shares have surged nonetheless ahead its third-quarter results, which are expected to show a decline.

Quebec’s two main opposition party leaders are backing an expected government contribution to Bombardier, even though the government continues to deny it will provide assistance, which is rumoured to be taking the form of either an equity investment or convertible debt. Analysts expect the government to invest cash of $1 billion to $2 billion in its transportation unit in order to avoid a planned IPO to sell a minority stake in the rail division, or it could provide favourable financing to customers that buy Bombardier Aerospace CSeries.

Confirmed plans are expected to be announced later today.

admin
By admin October 29, 2015 21:17