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Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRXF | BDRAF | BDRBF | T.BBD.B | T.BBD.PR.B | T.BBD.PR.C | T.BBD.PR.D | BOMBF | BDRPF

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.


TSX:BBD.A - Post by User

Post by PabloLafortuneon Jan 05, 2021 2:18pm
373 Views
Post# 32225225

Alternative Scenario: What if CDPQ had invested "en haut" ?

Alternative Scenario: What if CDPQ had invested "en haut" ?Instead of investing in BT, they bought BBD.B shares.  By my guesstimate, there would be ~4B shares outstanding instead of ~2.4B (based on USD1.5B x 1.33 exchange and $1.25 share price in November 2015 when the deal was announced).

But also, net of Alstom shares, Bombardier's debt would be close to nil (I'll know for sure after Q4 #'s released - I'll have to capture how much dividend CDPQ received from BBD...).

The break-even of the company would be closer to $900M per quarter I'm guessing. Which means their break-even backlog would be more than 4 years.  Company would be in the best financial position of any of the competition able to invest new planes, etc...Future would be undoubted.

IMO, the share price would be at least $2 (4B shares x $2 / 1.33 = USD$6B) and going up from there.  Which means that ceteris paribus, in order for CDPQ not to have profited from the situation at the expense of other shareholders with the structure they imposed on Bombardier, that's where the share price would need to be when the deal with Alstom closes.

YMMV
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