3.1 C
New York
November 18, 2019
Business

Trudeau election win boosts SNC-Lavalin shares amid hopes around criminal case

MONTREAL – SNC-Lavalin Group Inc. shares shot up Tuesday after the Liberal election win left open the possibility of a plea deal on fraud and corruption charges facing the engineering firm.

The beleaguered company saw shares climb 13 per cent or $2.24 to $19.92 in early-afternoon trading, buoyed by investor hopes that the Liberal refusal to close the door on a deferred prosecution agreement will play out to SNC’s advantage ahead of a criminal trial.

Prof. Karl Moore of McGill University’s Desautels Faculty of Management says the return of a Liberal government to Ottawa, albeit a minority, is “good” for SNC-Lavalin.

Analyst Chris Murray of Altacorp Capital says a resurgent Bloc Quebecois, which more than tripled its seat count to 32, could fan hopes the new Parliament might work to help the Montreal-based multinational.

Attorney General David Lametti has refused to shut down the possibility of a remediation agreement with SNC. The company has seen its market value fall by roughly 60 per cent since January amid a political scandal in Ottawa, and faces an upcoming trial on charges of fraud under the Criminal Code and bribery under anti-corruption legislation.

SNC-Lavalin declined to discuss the government’s intentions or comment on the ongoing court case.

https://www.ctvnews.ca/business/trudeau-election-win-boosts-snc-lavalin-shares-amid-hopes-around-criminal-case-1.4650348

Author: CTV News

Related posts

Smooth succession: Jack Ma eases out of a thriving Alibaba

CTV News

Enbridge CEO ‘deeply saddened’ by pipeline explosion death

CTV News

TSX moves lower on signals about interest rate cuts from Federal Reserve

CTV News