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LAXintl
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Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 12:06 am

With stock down 75%, an array of institutional investors is set to withhold support for relection of Chairman Pierre Beaudoin in a proxy vote due concerns over his "lapse of governance".

Caisse de Depot et Placement du Quebec, the biggest outside shareholder along with Canada Pension Plan Investment Board said they would withhold support for Beaudoin’s re-election.

Beaudoin, 54, took over as CEO of the company from his father in 2008.

Bombardier will report Q1 earnings on Thursday and is expected to report a small loss even after the C-series financial restructuring which saw much of its financials moved off books with Quebec governments investment. Tensions remain high with investors amid unclear turnaround effort.


Bombardier Showdown Looms as Investors Abandon a Family Scion
https://www.bloomberg.com/news/articles ... mily-scion

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Frankly I think BBD would be far better off today if the Beaudoin family had stood back years ago and allowed more independent managers to oversee the company.
From the desert to the sea, to all of Southern California
 
flyby519
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 12:28 am

Is there any chance of forcing Beaudoin out since the family owns a majority of the Class A shares (10 votes per Class A vs 1 vote for Class B)? Lots of institutional investors are pulling support from him, but is that enough?
 
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mercure1
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 12:35 am

The question is will the Beaudoin family who hold majority votes heed the concerns and loss of trust from investors, or will they ignore them and continue remaining in charge?

Maybe they should swallow their pride and step aside a little, otherwise it might come back and haunt them next time they are out looking for support and cash.
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Dash9
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 1:54 am

LAXintl wrote:
With stock down 75%


This is a little bit sensationalist as it depends on time reference. I purchased my BBD stock 14 months ago and I'm up 120%. So is the Caisse as they bought a fair chunk of BBD transportation business on the cheap.

That being said Pierre Beaudoin must go, there is no doubt about that. There must have been back room discussions but now it is in the media which shows the magnitude of the trust issue. If you ask yourself 'would the guy be in charge if it was only for his talent' you just answered your question. His father Laurent Beaudoin made the BBD you know today by going into the rail and aerospace business. Before that Bombardier was a small yet innovative manufacturer. But the son is not the father. That is now obvious to everyone.

Regardless of share structure, BBD is still around because the Quebec and Canadian government always stood behind their biggest industrial champion. But just yesterday a Quebec minister said 'Bombardier must listen to ther shareholders...'. IMO that is the final nail in the coffin. The Beaudoin-Bombardier must now relinquish the board or risk losing government, institutional investor and public trust, all at once. If that happen they're toast. BBD won't survive without this support.

Me says if the Beaudoin-Bombardier families are no kamikaze they are currently negotiating Pierre's his eviction terms. They will get a known public figure that has general trust in the population and the financial community to act as Chairman.
 
Wayfarer515
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 5:52 am

Pumping up shares by receiving government "investments" cannot mask the ugly truth. Everyone mentions how wonderful of an airplane the C-series is, but for some reason nobody wants to get near it. I've said it before and I say it again, this plane has proven to be an overkill for its segment, and now the chicken has come home to roost. In hindsight, having NEO´d the CRJ's would have been a better option ÍMHO.
 
dare100em
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 6:03 am

Wayfarer515 wrote:
Pumping up shares by receiving government "investments" cannot mask the ugly truth. Everyone mentions how wonderful of an airplane the C-series is, but for some reason nobody wants to get near it. I've said it before and I say it again, this plane has proven to be an overkill for its segment, and now the chicken has come home to roost. In hindsight, having NEO´d the CRJ's would have been a better option ÍMHO.


Certainly not. The C-Series was the only option for Bombardier to stay in business in the aircraft market. Reginal jets are imploding as fast as possible and the business jets alone can't keep the company afloat and their are many players around in that segment.

However a mixture of bad timing AND especially the Boeing/Airbus duopoly hurts Bombardier heavily. On top comes a "suboptimal" mamagement for sure, but that happend e.g. at Boeing (787) or Airbus (A380/A400) too.
 
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mercure1
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 8:20 am

One must remember problems at Bombardier go beyond aerospace division and also effect the other side of the house.
The rail division is experiencing its own serious operational fiascos and financial challanges.
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Amiga500
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 11:59 am

Trying to do Lear85, Global7000 and CSeries simultaneously is enough on its own to indicate Pierre cannot be trusted to manage anything more than tying his shoelaces.

He may be a nice guy but unfortunately not up to the job.
 
Noshow
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 12:05 pm

The CSeries was a pretty smart concept by Bombardier back then. However when Airbus reacted with the neo and Boeing finally with the MAX it's market became too crowded. The Lear 85 program was a desaster from the decision to build it from CFK at some high altitude location therefore creating material quality problems.
Last edited by Noshow on Thu May 11, 2017 12:07 pm, edited 1 time in total.
 
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novak500
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 12:06 pm

 
Amiga500
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 12:13 pm

Oh and Triumph (who have made a total balls of the Global wing) are supposedly threatening their own liquidation:

http://www.kansas.com/news/business/avi ... 55024.html
 
MIflyer12
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 12:16 pm

dare100em wrote:
Certainly not. The C-Series was the only option for Bombardier to stay in business in the aircraft market. Reginal jets are imploding as fast as possible and the business jets alone can't keep the company afloat and their are many players around in that segment.


There's plenty of room for regional jets - they just have to be the right type for their markets. If a firm wants to sell RJs to regional operators for U.S. carriers, they need to offer products that fit within seat and MTOW limits outlined in mainline pilots contracts, and have economical configs and range within those limits. Carriers (independent or affiliated) for DL, AA, UA and Alaska operate hundreds and hundreds of CR7, CR9 and E75s -- more than ever before. And they keep buying more.

If they can't do that (as with the C-series) they're competing in the mainline space. That's not so easy when you're pushing high cost, very long life assets that depend on a global network of suppliers that need economies of scale.
 
johns624
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 12:22 pm

The Ford family has a similar stock arrangement in Ford Motor but has never hesitated to bring in outside CEO's when the need arose. Everyone still knew who was in charge. Maybe Bombardier should do the same.
 
leghorn
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 12:30 pm

or even Quandt family with BMW.
 
blueflyer
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 1:04 pm

Dash9 wrote:
LAXintl wrote:
With stock down 75%


This is a little bit sensationalist as it depends on time reference

Since Beaudoin was appointed CEO. It's factual, not sensationalist, just missing the appropriate "time reference."
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leghorn
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 1:09 pm

New management will only help so much. We can't shill this type of share to success like a TESLA or a Bitcoin. Share value will only go up with firm orders and strong management with the emphasis on orders.
 
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LAXintl
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 3:10 pm

While reelected to the board today, company says chairman Pierre Beaudoin has elected to step down from his executive role in June.
Beaudoin will still chair the board, but will no longer have any management role at Bombardier, a company spokesman said.

Pierre Beaudoin stepping down from executive role
http://www.theglobeandmail.com/report-o ... e34953784/

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From the desert to the sea, to all of Southern California
 
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mercure1
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 6:04 pm

Its nice he elected to step away from his executive title, but remaining as board chairman will still provide him a platform to influence and look over the shoulders of any new executive hired.

To me having 5 Beaudoin family members on the board is hardly ideal for transparency and independent management governance.
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LAXintl
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Re: Bombardier Showdown as Investors Abandon Family owners

Thu May 11, 2017 11:38 pm

Thats true having him remain as chairman of the company along with other Beaudoin family members on the board hardly makes it easy for any future leader to act independently or not worry about the family hanging over their shoulders.
From the desert to the sea, to all of Southern California
 
golfradio
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Re: Bombardier Showdown as Investors Abandon Family owners

Fri May 12, 2017 12:17 am

Wayfarer515 wrote:
I've said it before and I say it again, this plane has proven to be an overkill for its segment


It's only your opinion. I don't know what you mean by an overkill for its segment. In the 100 to 150 seats there is none other that can match it's payload/range for the same fuel efficiency and cost.

Wayfarer515 wrote:
Everyone mentions how wonderful of an airplane the C-series is, but for some reason nobody wants to get near it.


There are good reasons why it did not sell. The 787 screw up and the relative firsts for BBD with the CSeries (clean sheet, FBW) meant airlines wanted to wait and watch. When it started proving itself in flight tests and it was clear it was going to beat the brochure specs, it started generating interest. BA and Airbus started aggressively scuttling sales with ridiculous pricing (remember the AK, U2, F9 and more recently UA campaigns?). And then oil collapsed. If oil had been above $100 today, the order book would be hovering close to 1000 today.
CSeries forever. Bring back the old site.
 
F9Animal
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Re: Bombardier Showdown as Investors Abandon Family owners

Fri May 12, 2017 4:14 am

It saddens me to see Bombardier going through this. I still think this company revolutionized the regional airline industry. I would love to see the C-series be successful, and climb to the top. I would also love to see a larger version of the plane come out.
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gsg013
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Re: Bombardier Showdown as Investors Abandon Family owners

Fri May 12, 2017 8:04 pm

The C-series is a money loser why don't they just stick to the private jet space? The global series and Challenger series are great planes to fly one and they provide a lot of value in comparison to their competitor Gulfstream althogh the Gulfstreams are nice planes as well just very expensive for what they are. .

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