RE:RE:RE:RE:RE:RE:RE:Will the family do the right thing?Agreed - I re-read the August 10 press release by Alstom. Really bad.
bbdaerospacecnd wrote: Massive buying would make the bonds price jump very quickly but it is good idea to implement after bbd gets money.
Martel made it public that CDPQ gained US $1.56 bln on their $1.9 bln investment in bbd and it felt like a rebuke when he was asked whether bbd should get any public support
Separate BT, cede control and invite partners as countermeasures for any breaks in talks with Alstom. BBD also mentioned that it had productive talks in UK with the gov and on schedule timeline adjustments. IAlso, Germany's loan guarantees give bbd a room to manoeuvre . They indeed need to get ahead of the curve in regards to Alstom deal
Alstom already made a statement that it will seek "a better terms" (aka low ball terms) and market does not like it. The uncertainty is the killer
pablo87 wrote: bbdaero, actually it would really hurt CDPQ's reputation in Quebec if the public found out what they did to Bombardier - "Bombardier was forced to sell their transportation division to Alstom because CDPQ was charging them 15% interest when Alstom was only paying 0.25% to the French state" - une pierre, deux coups - hurt Bombardier and hurt CDPQ.
The 2027 bonds is important too - its $160M interest annually for 7 more years (~ the same as Gulfsteam's proportionate share of General Dynamics' interest expense) and right now its well under par so opportunity there...if Bombardier finances turn around, this bond would trade much higher perhaps as high as 110 so it would cost Bombardier $2.2B to buy it back as opposed to $1.5-$1.6B right now.
bbdaerospacecnd wrote: Agree. CDPQ is the elephant in the room that has be adressed. They stand to gain another US $1 bln upon the closing of Alstom deal according to WSJ (to the tune of $2.5 bln total return of 70% on bbd investment) and , imo, would push bbd to accept the Alstom low ball terms . Shareholders got negative 75% .
Very shortsighted on CDPQ part. If it would not be for their greed and chokehold squeeze of bbd, they could have be a major positive force to get bbd over the hump and be profitable.
BBD got loan guarantees in Germany, it should help
https://www.mdr.de/sachsen/bautzen/bautzen-hoyerswerda-kamenz/buergschaft-summe-bombardier-100~amp.html
SECURITY PAPERS (11 from 11 hits)
pablo87 wrote: What I'm afraid of is if Alstom cancels the deal or formally asks for a better price, all heck will break lose. They should get ahead of that curve IMO (and maybe they have...).
bbdaerospacecnd wrote: Alstom sp is near record highs and BBd is near 35 year lows
alstom market cap : Eur $ 10.985 bln
bbd market cap: Eur $0.637 bln for both BT and BA (so it's appr Eur $0.320 bln for just BT)
and both rail companies have similar revenues .
The family should give up control in BT and partner with somebody . China would pay huge premiums for just one BBd subsidiary to get a foothold in Europe . BBd has operations in 60 countries , they could get value by streamlining
bbdaerospacecnd wrote:
Imo, the family could separate BT as a separate enterprise through partnerships. If the family gives up the control for BT then the interested parties (Hitachi, Siemens, China) could step in . Maybe BT could sell just individual subsidiaries in some countries to streamline their rail operations and focus on profitable zefiro platform for high speed trains and monorails.
BA would be untangled and become profitable. That would unlock the value for the shareholders.
the sp is controlled within 0.005 range by big players and I would not be surprised if Alstom is trying to squeeze BBd into acceptance of low ball offer
https://cincodias.elpais.com/cincodias/2020/08/11/opinion/1597140889_600625.html
flamingogold wrote: Remove Pierre Beaudoin as Chairman and from any executive decisions going forward. This would double the stock instantly.