Bombardier stocks get a lift from reported aid

Company’s shares rise as Quebec government thought to be offering financial help

MONTREAL— Bombardier’s shares got a lift Wednesday after a published report suggested the Quebec government will be making a financial contribution to the embattled transportation giant. The Quebec-based company’s stock gained 11 per cent to close at $1.61 in Toronto. The gain trimmed this year’s decline to 61 per cent, according to Bloomberg.

The Montreal La Presse report says the provincial government’s intervention will be announced Thursday following the release of Bombardier’s third-quarter results.

It wasn’t clear whether the province or the province’s biggest pension-fund manager, the Caisse de depot, would buy Bombardier shares or make some other form of financial contribution.

Bombardier has received sizable financial contributions from Quebec, Canada and Britain to help develop and sell the CSeries

Analyst Benoit Poirier of Desjardins Capital Markets said he suspects the province could either make a$1-billion to $2-billion direct participation in Bombardier Transportation or provide favourable financing to CSeries customers. He doubts any aid will come through equity financing, given the 62-per-cent drop in the company’s stock price this year.

The governments of Quebec, Canada and Britain have previously made sizable financial contributions to Bombardier to help develop and sell the CSeries, the 110- to 160-seat commercial jet that is set to enter into service next year following a twoyear delay.

Quebec isn’t the only government partner concerned about Bombardier. Northern Ireland’s economy minister was meeting with senior company officials as part of a five-day mission to Montreal and Toronto.