Bombardier Aid Talks Stall on Trudeau’s $3 Billion Pitch
- Canadian government wants aerospace company to sell stock
- Bombardier family unwilling to budge on dual-class shares
Bombardier Aid Talks Stall: What's at Stake?
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The Canadian government is pushing Bombardier Inc.’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.
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, Canada 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.