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Bombardier profit warning, they may exit from joint Airbus venture

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Bombardier profit warning, they may exit from joint Airbus venture

Old 17th Jan 2020, 00:13
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Bombardier profit warning, they may exit from joint Airbus venture

See

https://www.theglobeandmail.com/business/article-bombardier-stock-sinks-on-profit-warning-possibility-of-exiting/
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Old 17th Jan 2020, 09:18
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Uh ? What JV are we speaking of here ? the C Serie aka a220 ??
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Old 17th Jan 2020, 11:08
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Originally Posted by atakacs View Post
Uh ? What JV are we speaking of here ? the C Serie aka a220 ??
I am not very familiar with business intricacies, but didn't Airbus *buy* the C-Series and all that comes with it? So I am also a bit puzzled by the joint venture talk here.
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Old 17th Jan 2020, 14:59
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Airbus bought 50.01% of the 220 program. 30% is still owned by Bombardier and the remainder by the Province of Quebec. Bombardier is thinking about selling their 30% to make a quick buck. I'm sure Airbus wouldn't mind picking up the Bombardier shares.
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Old 17th Jan 2020, 15:11
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Airbus bought *most* of the C-series in the formation of a joint venture. Bombardier retains a 33.58% of the JV and can oblige Airbus to buy it in 2026 (and vice versa Airbus can oblige Bombardier to sell), or the parties can both agree to a sale earlier.

From https://www.reuters.com/article/us-b...-idUSKBN1ZF1F2 describing the ownershop of the C-series programme:
Under the terms of the 2018 deal, Bombardier could oblige Airbus to acquire its 33.58% stake in the program in 2026 at market value or Airbus could oblige Bombardier to sell the stake. Still, Bombardier has previously said the parties are free to transact earlier if they both agree.
...
Airbus, which has a 50.6% stake in the A220 program, said it remained committed to funding the jetliner on its way to profitability.
....
A spokesman for the economy minister in the Canadian province of Quebec, which holds a 16.36% stake in the A220 program, declined to comment.
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Old 18th Jan 2020, 13:20
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36% is 36%, I suppose, but Bombardier stock price has been in the gutter for years.
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