Bombardier Inc. T.BBD.A

could The Bomber still back out of the deal

[zax10001]

If Alstrom doesn't want to play ball and pay a premium for all these new contracts that the Bomber is getting in the 4rth quarter.
I wonder if the Bomber could still back out of the deal with Alstrom for a measly $79 million.
What do you think would happen to the share price if the Bomber pulled the pin on it.

Zax

[Shamhorish]

Good Question i hope they can do it i hope they will ba Allowed to do it (in my opinion gov will not allow it, cdpq will not allow it) if bbd have the finances, and can walk away from that deal, it will be a big wion for us

[Bottoms]

I'm thinking the bomber needs to keep enough of the BT sale proceeds to pay off all debt outstanding in 2021/2022 but they will have some excess cash on hand since they won't be paying back future debt owings right away. They should take that money and use it to buy back the Caisse portion of BT as the deal is closed (may have to be financed on an overnight deal contingent on BT sale

[johnney]

Bottoms how can we explain this, BT sale proceeds, when it's been written off their books after Q3! Someone here has answer for this!

[Bottoms]

I'm talking about the sale of BT. Not the trains, the division.

[johnney]

Bottoms, BT has been sold, do you get that!

[Bottoms]

Johnney, if you can't understand the logic in my post, please refrain from refuting it. BT has been sold. The bomber has not received the sale proceeds yet. The bomber still has the legal right to buy back the Caisse before the deal closes. This would result in the Bomber receiving the BT sale proceeds previously allocated to the Caisse. Bomber would be left with less cash from the BT sale but

[johnney]

Bottoms, and how will they reduce their $9.3B debt!

[Bottoms]

They will have the money for 2021 and 2022 debt dues. The issue comes up in 2023 which is when refinancing will be needed to survive. They won't pay 2023 dues in 2021, the penalty makes it not worth it. Better off having that money work for the bomber by owning a huge chunk of Alstom. Alstom shares will provide the upside the Bomber lacks to renegotiate its debt from a stronger standpoint

[HopefulJuan]

The new CFO needs to reduce finance charges. He was brought in for that reason.

[johnney]

Not only reduce finance charges, but to negociate at lower interests for their remaining debt, not to pay what their paying now, cause even if left with $4, or $5B left, won't make it with the high interests that their paying now!

[raphaelle2]

No wont happen. EM said many times that BT proceed is for paying debt.They are working on another deal to restructure their capital base.

[johnney]

raphalle2, that's what i read and understood too from EM, unless he comes out with a different story by then!

[HopefulJuan]

I like the idea of buying the CDPQ shares in all BBD related dealings. Caisse has no expertise in manufacturing. Money has allowed them to be so influential. They have no business trying to be something they are not. And they should finance the transaction at a proper low interest rate.