Too French to Failthis is easy money. No way they can lose. Trudope and other Quebec leaders will do what it takes to smooth everything out. MONTREAL — Despite a turbulent short-term horizon, Quebec's Caisse de depot does not intend to dump SNC-Lavalin Group Inc. amidst the ongoing firestorm.
The Caisse — the province's pension fund manager and SNC-Lavalin's largest shareholder with a stake of about 20 per cent — delivered a vote of confidence in the beleaguered construction giant Thursday.
"The markets have probably overreacted recently," said Caisse chief executive Michael Sabia of SNC-Lavalin. "This represents an investment opportunity."
The gauntlet of woes has tanked the company's share price, which now hovers at around $35 on the Toronto Stock Exchange.
"I think it's important to understand the significance of the magnitude of change in this company in recent years," he said. "There was a new board, a new direction. It's about big changes in culture."
Sabia said the Caisse would "be a rock" for SNC-Lavalin and ready to boost its stake in the company, barring any technical barriers.
"The world needs billions of dollars in infrastructure investments, not just in emerging markets, but also in developed countries," Sabia said. "Our job is to identify companies with a lot of potential in the long run. That's exactly the definition of SNC-Lavalin."