UPDATE 2-Pension fund Caisse open to investing more in Bombardier

Wed Feb 24, 2016 2:06pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* CEO says Bombardier CEO Bellemare going 'good job'

* 2015 weighted average return 9.1 pct vs 12 pct in 2014

* Net assets increased to C$248 billion by end of year (Adds further comment from Sabia, paragraphs 5, 6)

By Matt Scuffham

MONTREAL, Feb 24 (Reuters) - Canada's second-largest pension fund, Caisse de depot et placement du Quebec, said it was open to further investment in Bombardier Inc after reporting strong returns in 2015.

Quebec's public pension fund manager agreed to buy a 30 percent stake in Bombardier's rail business for $1.5 billion in November, providing a bigger cash cushion for Bombardier's planemaking unit.

Asked if the Caisse would invest further in Bombardier Inc, Caisse Chief Executive Michael Sabia said: "Are we open to the idea of increasing our position? Yes. Are we going to increase our level of investment in Bombardier Inc very soon? Probably not. We have an important investment in a subsidiary of Bombardier. For now, that represents significant exposure."

Bombardier has struggled to win new orders for its C Series plane with some potential clients looking for more certainty about its financial health before placing orders. It remains in talks over possible federal aid.

Sabia said federal aid would make Bombardier more attractive to investors by providing that certainty.   Continued...