Bombardier Inc aid talks halt after Trudeau’s $3 billion pitch, request to remove dual-class shares: source

, Bitcoin Tips

Canada wants Bombardier to do away with the dual-class share structure that allows the Bombardier and Beaudoin families to maintain control with only a minority stake.

The Canadian government is pushing Bombardier Inc.’s founding family to loosen control of the aerospace company and issue $1 billion in new stock, triggering a standstill in talks over a federal aid package, according to people familiar with the negotiations.

Prime Minister Justin Trudeau’s proposal to Bombardier would see his government and the province of Quebec each invest $1 billion in the company, along with a share sale that would raise another $1 billion to bolster the firm’s balance sheet. Along with the $3 billion plan, Canada wants the company to do away with the dualclass share structure that allows the Bombardier and Beaudoin families to maintain control with only a minority stake. 

Bombardier is balking at these demands, according to people familiar with the talks, speaking on condition of anonymity because the negotiations are private. Federal officials now believe it’s up to Bombardier to make the next move.

Related

No Comment

  • Wow, awesome blog layout! How long have you been blogging for?
    you made blogging look easy. The overall look of your website is wonderful,
    let alone the content!

Leave a Reply

*