PPRuNe Forums

PPRuNe Forums (https://www.pprune.org/)
-   Rumours & News (https://www.pprune.org/rumours-news-13/)
-   -   Bombardier profit warning, they may exit from joint Airbus venture (https://www.pprune.org/rumours-news/628915-bombardier-profit-warning-they-may-exit-joint-airbus-venture.html)

NutLoose 16th Jan 2020 23:13

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/
​​​​

atakacs 17th Jan 2020 08:18

Uh ? What JV are we speaking of here ? the C Serie aka a220 ??

AviatorDave 17th Jan 2020 10:08


Originally Posted by atakacs (Post 10665149)
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.

Rimmon 17th Jan 2020 13:59

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.

nicolai 17th Jan 2020 14:11

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.


340drvr 18th Jan 2020 12:20

36% is 36%, I suppose, but Bombardier stock price has been in the gutter for years.


All times are GMT. The time now is 10:22.


Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.