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Family control stalls Bombardier aid talks
The Canadian government is pushing Bombardier'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.
May 17, 2016 By Bloomberg News
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, the Canadian government wants the company to do away with the dual-class 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. | READ MORE
