You keep emphasizing the poor management of BBD as the reason why they've ended up where they are today. Pretty hard to argue or disagree with you on that. But, this company is under new management and has been for most of 2015. You don't seem to have taken this into account. (Correct me if I'm wrong)
Hi Willie, you are still doing selective reading. I said nothing about
management. I wrote about
governance. Big difference!! Once again:
But ultimately the proposed deal is bad for BBD.B shareholders because it allows the Bombardier family to remain firmly in control. There will be
no governance changes and no accountability for this financial disaster.
...
- The Air Canada deal will be sold as evidence that Bombardier has a "strong business case"
- The board seats at the new subsidiary will be sold as evidence that "positive governance changes" are being made
Governance == Board of Directors, not management.
Control of the Board is still held firmly by the Bombardier family. They have 60% of the votes since their Class A shares have 10 votes each vs. Class B shares having only 1 vote each.
And, even from a management perspective, the current CEO Alain Bellemare still ultimately reports to the old CEO, Pierre Beaudoin, who is now Executive Chairman. There was talk late last year that Beaudoin would resign his position -- which would be a good first step -- but that didn't happen.