Bombardier Inc. T.BBD.A

Will the family do the right thing?

[flamingogold]

Remove Pierre Beaudoin as Chairman and from any executive decisions going forward. This would double the stock instantly.

[Bullvsbear99]

Unfortunately that wont change anything now. We must follow thru with all the transactions and concentrate in BA. I think there will be consolidation in bizz aviation and i hope to see Bombardier merge with textron. They will have complete line up from single engine piston aircraft to the global 7500. Together they will be a huge force and can concentrate on drones, flying cars and special mission

[flamingogold]

Maybe Boeing will emerge as a buyer given the black clouds over hanging commercial airlines and their heavy exposure to it. You never know, BBD is dirt cheap now.

[stockitnow]

Cant trust boeing. Look what they did to EMB. Also i don't think they have money. I think bombardier and textron merger will be good for both companies.

[flamingogold]

Sad to say but I trust Boeing over Bombardier and so would the market... guaranteed! It would cast a large net over US investors and convert the existing shorts into longs.

[bbdaerospacecnd]

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

[bbdaerospacecnd]

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

[pablo87]

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]

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

[pablo87]

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

[bbdaerospacecnd]

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

[pablo87]

Agreed - I re-read the August 10 press release by Alstom. Really bad.  

[raphaelle2]

LOL...Get real Pablo ! Typical Shenanigan from the french press fuelled by Alstom PR back room ... Alstom needs BT so badly that they are just trying to cover this up vs the french unions in order to get their synergies...Nothing unusual here... Also there is no rush for BBD to close the deal. On the contrary time is on their side with the resolution of the legacy projects...and the accumulation

[Bullvsbear99]

CDPQ will not allow the acquisition to fail. With Alstom they get a bigger balls to squeeze. Alstom is just talking smack. Bombardier will meet their obligations for deal to close. Thats why Bombardier spent over $300 million to clean up rail. They have more than 9 months to address the issues.

[pablo87]

Btw, the BT joint venture is very profitable, $50M in Q2...

[pablo87]

Btw, If they have $2B to spare (...), they should buy back the debt first. If they can buy back 2.5B various at 80 cents on the dollar, they made $500M. That $500M pays for the premium to buy back CDPQ. So they need $4.2B from cashflow or from QC or BT asset sales (Hitachi JV being off the table, a portion can be sold now.) to do both....

[flamingogold]

Exactly, why only a $75 million break free too? The market smells a panic deal and has given zip premium despite an historic market comeback during this pandemic. If we get any kind of Fall selloff and further if Alstrom sqeezes BBD on the dea or Spirit cannot closel and this stock goes to 20cents. That's why the shorts are still hungry.

[pablo87]

I hate to admit, but I'm afraid you are right...I follow Gundlach and he feels the market is due for a major correction.