Money Bombardier to make a 'positive' announcement this week, says Quebec minister
Bombardier should look to sell either train or jet unit to deal with debt: Quebec economy minister
Pierre Fitzgibbon responded to a Wall Street Journal report that said the transportation company, headquartered in Montreal, is in talks with U.S.-based Textron Inc., about selling its business-jet division.Pierre Fitzgibbon was responding to a Wall Street Journal report that said the storied transportation company, headquartered in Montreal, is in talks with U.S.-based Textron Inc., about selling its business-jet unit.
MONTREAL — Quebec Economy Minister Pierre Fitzgibbon says "positive" news for the province will likely be announced Thursday by Bombardier when the aircraft and train manufacturer releases its financial results.
The minister says he has read "all the information" but that he is "not comfortable talking about it yet," opting to leave the announcement to the company.
Fitzgibbon, asked Wednesday if jobs would be maintained in Quebec, replied that he believed "there will be good news," without stating whether the province would again provide financial support to the multinational company.
How once mighty Bombardier became politically toxic in Quebec
There was a time when, if the going got tough for Bombardier, it could count on a helping hand from the Quebec government. Those days might be over. Bombardier is in debt, big time, to the tune of almost $10 billion US, according to an estimate from September. Last month, the company issued a profit warning, with analysts projecting that cash flow would be weak for the foreseeable future. As its share price plummeted, a report emerged this week that Bombardier is looking at selling its business-jet unit.
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The provincial government has already signalled that it has no plans to inject more money into the A220 program — formerly Bombardier's C Series — which is now controlled by Airbus. Instead, Premier Francois Legault says the goal is to protect the government's US$1-billion investment in the A220 in 2016.
Bombardier, which is the subject of several rumours about its future, will detail its performance in the fourth quarter and for the year 2019 on Wednesday after warning last month that is was considering alternatives to reduce debt.
Jesse Kline: Bombardier lives by the hand of government and dies by it
Jesse Kline: Bombardier lives by the hand of government and dies by itBombardier is in trouble — again. But after years of suckling on the public teat, it looks like the tide may be turning when it comes to political willingness to support the company with public money.
The Montreal-based company is said to be negotiating with Airbus to sell its share in the Airbus Canada Limited Partnership. There have also reportedly been talks with the Rhode Island-based Textron regarding the sale of its business jet division, which is very active in Quebec.
On Wednesday, the French news outlet BFM also reported that Alstom was preparing to finalize an offer to acquire Bombardier Transportation, a division that the Caisse de depot et placement retains a 30 per cent stake in.
This report by The Canadian Press was first published Feb. 12, 2020.
Companies in this story: (TSX:BBD.B)
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Bombardier to sell train unit to Alstom for US$8.2B, shedding biggest division .
MONTREAL — Bombardier Inc. has reached a US$8.2-billion deal to sell its rail business to French train giant Alstom SA, narrowing the plane-and-train maker's focus as it commits itself solely to business jets while casting off its largest division in part to help pay down US$9.3 billion in debt. "Going forward, we will focus all our capital, energy and resources on accelerating growth and driving margin expansion in our market-leading US$7 billion business aircraft franchise," CEO Alain Bellemare said in a statement Monday.
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