RE:RE:How Much With Bombardier Fetch for Learjet?Thanks for giving me a chance to clarify, Pierre. Quebec is seeking an equal partner to support Bombardier in their time of need. At such point that Bombardier no longer requires the financial aid, Bombardier will buy their shares back, according to the agreement. You can even see Phillipe Cuillard's comments in the Montreal Gazette this morning (I guess my post last night was rather perceptive).
“We were there at a strategic moment for a strategic reason,” Couillard, Quebec’s premier since 2014, said. “From the start we said that a third partner would be welcome. Our destiny as a government is not to be an airplane manufacturer.”
https://montrealgazette.com/business/canada-must-invest-in-bombardiers-c-series-jet-couillard-says?__lsa=5c9e-e482
As for the comment about 24.5% - right now Bombardier retains 51.5% of the CSeries program and the Quebec government, 49.5%. If Bombardier and the Canadian Government each put in another $1.3 billion CAD, Bombardier will retain its 50.5% of the program and the other two parties will split the remaining 49.5% at 24.75% each (thanks for correcting me, I rounded down to 24.5%).
Why would the Quebec government and Canadian government only split 49.5%? Well for someone who purports to be so well informed, you haven't been paying attention. This is what the Trudeau government proposed in May, and their addition to the partership has been requested by the Quebec government all along. See this article in the Financial Post from May.
https://business.financialpost.com/news/transportation/bombardier-aid-talks-said-to-stall-on-trudeaus-3-billion-pitch
The Trudeau government has backed down from their demands for the share restructuring to remove the Class A shares, but I believe they don't want to be in a position to be sharing a controlling interest in the CSeries program with Quebec, therefore Bombardier needs to hold only their 50.5% share to maintain their controlling interest in the program. Once the extra $1.3 billion CAD from Bombardier is in play, I expect it would be a done deal.
You see, my reality is based on the facts already on the table. Again, thanks for giving me a chance to clarify.
pierrelebel wrote:
"...with Bombardier retaining 51% of the program and the Feds and Quebec each keeping 24.5%."
Now I am curious. Currently the taxpayers of Quebec own 49.5% of the C Series for which they paid $1.3 billion dollars (actually they had to borrow the money - on which they pay interest - to complete their investment in the C Series).
How do they end up with only 24.5%? Why would the taxpayers of Quebec agree to such a deal where they lost half the value of their investment? It does not make any business sense.
"With Service revenue of $300 million a year... they'll sell it for ...... $1.2 billion."
Where will you find a buyer willing to pay that much (4 times revenues) for so little (net profit)?
It is all wishful thinking, not based on reality.