11-19-2015, 11:25 AM
(11-19-2015, 11:11 AM)kps Wrote:(11-19-2015, 10:54 AM)Canard Wrote: I don't know anything about how business or shares and all that works. What does this mean for Bombardier?
It means the Québec government is bailing them out again.
Yes and no. It's neither a gift or a loan, it's an investment, and CPDQ will own 30% of Bombardier Transportation, which is very much a viable business. CPDQ will be looking for future profits from that business (and possible disposal of their stake somewhere down the road) for returns on the investment. With a 30% stake they will have a significant voice in how the business is managed.
And CPDQ is managed independently of the government. Their mandate is to ensure returns for the pension plans (similar to CPP or Teachers') while also supporting Quebec industry. This seems like a pretty good fit for their mandate, although I can't judge how attractive the price is.