Investors in Bombardier Inc. are concerned about delays and cost overruns on the company's ambitious $4.4 billion CSeries jet, along with Bombardier's announcement that it would miss profit goals and stop developing a Learjet 85 business jet,
Bloomberg reported.
Analysts and fund managers told Bloomberg they think Bombardier should stop paying its 2.5-cent quarterly dividend. In the first nine months of 2014, Bombardier paid out $137 million in dividends, the article said.
The Bloomberg report noted that Bombardier's Class B stock has lost 67% of its value since Pierre Beaudoin took over as CEO from his father in 2008. Members of the Bombardier and Beaudoin families control the company through super-voting Class A stock.
Tony Crandall, a Montreal-based analyst at MacDougall, MacDougall & MacTier Inc., told Bloomberg, “This is a family-run company, so you can't exactly have an investor coup and overthrow management here. Still, the pressure is definitely on them now. They've run out of excuses.” (Source: Bloomberg, Feb. 3, 2015.)
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