Bombardier Inc. T.BBD.A

A shares

[bbdaerospacecnd]

What is clear: somebody (s) whants a controlling stake in bbd
Who:

a family member(s) due to the family infighting in the direction the company is going
or 
outside equity with purpose of first gaining controlling stake followed by a takeover 
or
a mixture of two , I..e an outside entity supporting a family member in grabbing  the control

any thoughts?

[johnney]

bbdbaero, anything is possible! But someone will ask them questions pretty soon i guess to explain the price differance between the two, that makes no sense at all for now!

[Jim99999]

Something is up. According to BBD investor relations website, as of May 6, 2020, the family controlled only 48.41% of voting rights. Perhaps some entity has noticed this and is trying to accumulate A shares in an attempt to prevent the family from getting above 50% again. https://ir.bombardier.com/en/share-information Jim

[bbdaerospacecnd]

that opens the door for the control grab by an outside entity with the takeover plans. It's possible that the family jumped in to preserve the control but if they missed it then the buying spree will shift to b's .  In a tight fight for the voting control the b's shares become crucial. You can grab  enough b's to shift the very tight balance

[tomski1981]

so u are suggesting a hostile takeover? makes sense to me. but if this is the case, expect Bs to not follow As and for both prices to drop suddenly. maybe long term this is good. 

[bicente]

I don't think there is a possibility in aquiring a controlling stake in this company , the family owns the amount of votes needed by holding the "A" shares,  and is not selling those ... the ones being sold and re-sold are the same ones over and over again ... the market thinks there is a change in the dual-share setup and is trying to buy up the most shares possible , FOMO has

[bbdaerospacecnd]

The family does not own the controlling stake any more, they only own 48.41%. It's game on for the controlling stake and I think B's become crucial is tight fight when two sides are below 50% here is Jim's post with the link:   Something is up. According to BBD investor relations website, as of May 6, 2020, the family controlled only 48.41% of voting rights. Perhaps some

[Jim99999]

Of course, that 48.41% is controlled by the four principal shareholders; there is undoubtedly additional shares held by extended family members. The point is, the margin of control, if still held by the family, is razor thin and it appears a power struggle may be occurring. Jim [/quote]

[tomski1981]

what if the family is fighting? a lot of them lost a lot of money when the stock tanked. could there be a split someone is trying to take advantage of?

[PabloLafortune]

The bigger picture is that without the debt and interest cost (balance sheet is more or less fixed now - I have details if so desired), this is a fantastic company and a formidable competitor.  Going forward, the debt and interest SHOULD NOT be an impediment to the success of the company. It shouldn't have been in the past either but that's water under the bridge. Everyone talks

[TruthBeTold7]

This post has been removed in accordance with Community Policy

[clubhouse19]

Pablo You made me think of something of the possibility that the move of the A shares has something to do with addressing the debt How it woll be structured remains to be seen. That is why imo the A shares have diverged so much from the b's

[raphaelle2]

Very likely.I Lets not forget that Bain Cap. has been working hand in hand with the Family to structure BRP. With both making ( and still) making a killing. I dont see EM restructuring the debt by himself. Not enough leverage. Complete different picture with a strong US partner.Will know soon! GLTA in board !

[bicente]

this is why I believe Martel said that he did not need the govts' help ... I believe the family has found cheap financing to cut down their interest rates and must give up some equity BUT they will not give up the voting percentages ... I think they are working on giving up futur profits/divids whatver  without giving up control , if that is possible ...one thing is for sure , it is good

[Jim99999]

They may not have a choice. If they still have control now, it is only by a sliver. Covid-19 has hurt them badly. Originally, they projected $2.5B net debt after Alstom deal. That is now projected to be at least $4.5B. Actual LTD will likely be north of $6.5B after Alstom proceeds are applied. They have $4.35B debt due by Jan 2023. To my thinking, they need an additional ~$2B at low rates

[bicente]

There is definitely a covid -caused addition to the debt but on the other hand we do not have all the numbers yet , let's not forget that Troudope is giving away money to everyone for salaries, stay-at-home workers , rents to industries and wherever he can throw the cash at ... hopefully the bomber got some if that free cash , that's as close as I would get  to some of that loot

[clubhouse19]

Bicente Whatever your political views are  about Trdeau...why would you totally degrade the covid relief funds as Canada is the only one with such a plan. Europe has a 2.1 trillion dollar one that is presently blocked by poland and hungary but not because of fiscal reasoning but because they are tied to openenss on free speech and human rights. Maybe you would like to see the same hunger

[bicente]

Canada is the only one with this plan you say ? Well it's because we are the only ones who would tolerate this fiasco while taking it in the behind ... do you have any clue how much this will cost ? And at the end of it all we will be indebted just as bad as the others , while we are getting just as infected ... please don't compare us to Europe , especially when it comes to taxation

[clubhouse19]

Bicente Maybe you can show us which countries and what they are doing that sre beong handled better since you say I should not compare to Europe or the Us since we are part of the g7

[bicente]

Your answer is a 5 year old's reasoning ... just because everyone else is lousy does not mean you are good .. TrouDope is a crook , look it up yourself .. GLTA quote=clubhouse19]Bicente Maybe you can show us which countries and what they are doing that sre beong handled better since you say I should not compare to Europe or the Us since we are part of the g7[/quote]

[clubhouse19]

Good job bicente on avoiding to answer and skirting the question when you don't have a response. Making no decision and letting things go by doing nothing seems to be your approach. Have some balls and make pne rather than constantly criticizing those that do make decisions That's how a grown up would do it !!! [/quote]

[bicente]

Seriously buddy , do you have a clue how much this free money will cost you ? Or maybe you are one of those collecting the free cash and sitting on your couch all day long .. if you'd like some company I have a 7 unit apartment building filled with CERB collectors , meanwhile my childhood buddy is working 14 hour days without employees ( they are on CERB) just to keep his clients , I know this

[clubhouse19]

You just proved my case and that is to do nothing as you are suggesting. Experts other than yourself or I think otherwise. 20 times more UI claims in US ...your solution would be to keep the same limits ...how would that help landlords or businesses? You find it so easy to criticize and calling Trudeau a crook does not change things as I can name you many crooks in politics perceived or otherwise

[balmusette]

Speaking about making decisions iI find that the elected decision makers really took their time before closing the borders. If they had acted sooner we would not be talking about shut downs today. Those who were following what was happening in China then in Europe knew that is was just a matter of time before the virus came here. Doctor Tam told us repeatidly that closing the borders was not a

[clubhouse19]

  You are correct...This is one of the down sides in living with the freedoms we have as leaders take their time in making decisions so as not to upset too many voters contrary to china and other dictatorships  with a total authoritarian rule that have no worries about upsetting voters or making a mistake. 

[flamingogold]

bicente, the company IS receiving government help in the form of wage subsidies like most businesses. Many here keep forgetting that. [/quote]

[PabloLafortune]

Not me. The programs Ottawa launched to keep people employed and to hire young people have been absolutely brilliant.  Whoever came up with that deserves a medal. [/quote]

[Jim99999]

Interesting line of thought. Do either of you have any thoughts on how such debt restructuring would look, with respect to shares and share structure? Keeping in mind that if the family owns less than 50% of issued A shares, the B shares can be converted to A's. Jim

[johnney]

Jim99999, maybe convert the B to A shares, by still having 2.1B shares out, i do not think so!

[clubhouse19]

The possibility I see is that the those holding the A shares who majority is the family would take over part of the debt with the company held as collateral while  servcing the debt with much better terms than what is at present.   Why esle would people want into the A shares ...This IMO may be one reason. Of course the B shares would also benefit, but not as much as the A's

[johnney]

Jim99999, when you say that the B shares can be converted to A to get their 50% back control, do you mean just a portion of the B, or all of them! That means we would end up only with the A, no more class B, but ther'e would be 2.4B shares of A, without shareholders loosing nothing!

[PabloLafortune]

Club, its what I'm thinking, yes. But who, what, where, how I have no idea - for once my big mouse and keyboard is at a loss for keystrokes.   I

[johnney]

Pabolafortune, you're saying this is a fantastic company, and a formidable competitor! your'e taking for the present, but this was in the past! Now they have to prouve back that they will become a fantastic company, big differance here!

[PabloLafortune]

Johnney, go read Dassault's latest CEO Q&A with reporters - its downright depressing even though their balance sheet is stellar and THEY have the full support of the French government. Product wise, they can't hold a candle to BA.

[johnney]

PabloLafortune, on which article i will find this about Dassault latest CEO Q and A with reporters! I searched but didn't find!

[PabloLafortune]

https://www.dassault-aviation.com/en/

[johnney]

PabloLafortune thanks, for the site of dassault, but on which place i will see it!

[johnney]

PabolLafortu, went on the site of dassaut, but didn't find the article1 But tell me what does dassault has to do with the BOMBER!!

[bbdaerospacecnd]

In case the family's control slipped below 50% then they may not be able to outbid the deep-pocketed attack by another entity  [/quote]

[bbdaerospacecnd]

if the bidding war for voting control slips into b's shares then it will cause b's to spike [/quote]

[johnney]

bbdaero, how come the family does not own the contoling stake anymore! Why are they below 50%!! does someone has an answer!!