Wednesday, July 24, 2019

SIGNALLING FOR ANOTHER GOV'T BAILOUT

   SNC-Lavalin Group Inc. drew a rare lecture on Monday from its largest shareholder, the pension fund Caisse de depot et placement du Quebec, as its stock dipped to 14-year lows on more expected losses and writedowns.
   In a statement, the Caisse warned SNC’s board to take “decisive and timely action” after the Montreal engineering and construction firm told shareholders it will lose money for a third consecutive quarter, announced a $1.9 billion write-down and proposed its second restructuring initiative this year.
“The deterioration of SNC-Lavalin’s performance … is a cause of growing concern for la Caisse,” the pension fund said in a statement, adding that “the current unacceptable trend of the business” must be reversed.

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