Feds wary of backing Bombardier without corporate changes
The federal government is expressing reservations about providing financial aid to struggling plane maker Bombardier Inc. without changes to the company’s corporate governance and leadership.
February 8, 2016 By The Globe and Mail
Federal officials are privately telling reporters the government of Prime Minister Justin Trudeau is concerned about how Bombardier is run, particularly the company’s ownership structure that gives its founding family control of the company through a special category of multiple-voting shares.
There is a feeling that Bombardier should loosen the family’s control or make other changes beyond what it has already done to prove it is willing to assume its fair share of the risk in exchange for the government aid it is seeking, one source said. The source suggested that unlike Bombardier’s $1-billion (U.S.) investment from Quebec for its C Series jet program, federal aid would not come without further compromises or sacrifices from the company. | READ MORE
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