The head office of SNC Lavalin are seen Thursday, February 19, 2015 in Montreal. (File photo by THE CANADIAN PRESS)

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

Liberal win left open the possibility of a plea deal on fraud and corruption charges

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.

The Canadian Press

READ MORE: SNC-Lavalin slashes profit forecast amid shift away from oil and construction

Like us on Facebook and follow us on Twitter

Comments are closed

Just Posted

Hotel workers gather in Victoria, demand right to return to work

Workers also asking the government to make sure employers don’t use pandemic to replace them

UPDATE: Vancouver Island skydiving community mourns loss of one of its own

James Smith, 34, of Victoria, dies in Nanoose Bay incident

World’s biggest Nanaimo bar confirmed, but it’s not in Nanaimo

Two Ontario children set the bar high with successful biggest Nanaimo bar world record attempt

Tofino beachgoers ‘horrified’ by jet-skis in surf zone

Online video of Sea-Doo operating within 50 metres of neophyte surfers causes alarm

Langford teens reunited with family after rescue near Chemainus

Friends spent night in missing truck, spotted by RCMP helicopter

Horrifying video shows near head-on collision on Trans Canada

The video was captured on dash cam along Highway 1

Elizabeth May endorses Furstenau in BC Greens race

Former federal party leader backs Cowichan Valley MLA

Fraser Valley woman complains of violent RCMP takedown during wellness check

Mounties respond that she was not co-operating during Mental Health Act apprehension

B.C. sees 12 new COVID-19 cases, no new deaths

Three outbreaks exist in health-care settings

Lost dog swims Columbia River multiple times searching for home

The dog was missing from his Castlegar home for three days.

COVID-19: B.C. promotes video-activated services card

Mobile app allows easier video identity verification

Nanaimo RCMP arrest four, seize drugs and $19K in “problem house” search

Home was subject of numerous complaints of drug trafficking, theft and disturbances

Victoria woman loses $2,500 to scammer spoofing VicPD phone number

VicPD warns against sharing personal information, sending money to strangers

Most Read