The Successful Investor Hotline – Friday, October 30, 2015

Article Excerpt

BOMBARDIER INC., Toronto symbols BBD.A $1.50 and BBD.B $1.42, announced this week that it will form a new joint venture with the government of Quebec. Under the deal, the government pay $1.0 billion for 49.5% of a partnership that will own the CSeries passenger jet business (all amounts except share prices in U.S. dollars). Bombardier will own the remaining 50.5%. The company is also giving Quebec warrants to buy up to 200 million class B subordinate voting shares at the U.S. dollar equivalent of $2.21 (Canadian) each. The warrants expire in five years. If Quebec exercises all of them, the extra shares would equal 8.18% of the total class A and B shares currently outstanding. Bombardier has also promised to keep its headquarters and CSeries plants in Quebec for the next 20 years. The cash from this sale will help Bombardier finish certifying the CSeries; flight tests are now…