4 ms·

There is a lot of value and scale at Bombardier. What is likely to happen is some private equity firm will form a syndicate and purchase the company - cut it in

There is a lot of value and scale at Bombardier. What is likely to happen is some private equity firm will form a syndicate and purchase the company - cut it into pieces, slash management, remove the fat etc. It will be a 3-5 year process. Worth highlighting I am not saying this with disdain for the private equity industry. One of its intanigble benefits is that it serves as an agent of dramatic change for companies and industries - change that cannot spontaneously occur for public or government owned institutions (e.g. the post office). Will be interesting to see how this plays out long term...

ConfuciusSay02 10y ago
That won't happen, because the Quebec government will not allow it.
- omouse 10y ago
  Because canadians are risk-averse. Hence why only the banks have been continuing to make money; they even invest in each other to keep the risk-averse cycle going.
  - ConfuciusSay02 10y ago
    It's also due to, in the case of the Quebec government, nationalistic sentiment. It's a difficult balance to strike - keeping and supporting high tech manufacturing, while trying to remain competitive. I think at the moment, the government intervention (blocking suitors and direct investment) is in fact doing more harm than good, but perhaps they know better - I have no knowledge of how competitive the C-Series really is or not.
    - dpc59 10y ago
      The liberal party of Québec isn't very nationalistic, it's mostly that they have very deep ties to the Beaudoin family that has inherited Bombardier from their parents without having the competency to manage it. And our government is in the hand of corporations since we still have colonial institutions, so they spend our tax dollars on free loans that will never be paid back.
      - ConfuciusSay02 10y ago
        Thanks for the info. I guess it's simply nationalistic window dressing for run-of-the-mill corruption.
  - dpc59 10y ago
    The canadians who want to invest in risky industries have more incentives to do so south of the border. Most of our population is within 100km of the american border, and it's pretty fucking easy to get a visa if you're about to invest money in the US.
  - astrodust 10y ago
    It's not risk-averse, it's being allergic to batshit crazy.

ConfuciusSay02 10y ago

That won't happen, because the Quebec government will not allow it.

omouse 10y ago
Because canadians are risk-averse. Hence why only the banks have been continuing to make money; they even invest in each other to keep the risk-averse cycle going.
- ConfuciusSay02 10y ago
  It's also due to, in the case of the Quebec government, nationalistic sentiment. It's a difficult balance to strike - keeping and supporting high tech manufacturing, while trying to remain competitive. I think at the moment, the government intervention (blocking suitors and direct investment) is in fact doing more harm than good, but perhaps they know better - I have no knowledge of how competitive the C-Series really is or not.
  - dpc59 10y ago
    The liberal party of Québec isn't very nationalistic, it's mostly that they have very deep ties to the Beaudoin family that has inherited Bombardier from their parents without having the competency to manage it. And our government is in the hand of corporations since we still have colonial institutions, so they spend our tax dollars on free loans that will never be paid back.
    - ConfuciusSay02 10y ago
      Thanks for the info. I guess it's simply nationalistic window dressing for run-of-the-mill corruption.
- dpc59 10y ago
  The canadians who want to invest in risky industries have more incentives to do so south of the border. Most of our population is within 100km of the american border, and it's pretty fucking easy to get a visa if you're about to invest money in the US.
- astrodust 10y ago
  It's not risk-averse, it's being allergic to batshit crazy.