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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

‘Not technically feasible’: Grand Forks volunteers stack sandbags to fill in damaged dike

Residents hoped governments would do emergency repairs, but learned Sunday that it was up to them

Boundary freshet 2020: At least 189 properties ordered to evacuate as of June 1

Real-time gauges on the West Kettle, Kettle and Granby rivers suggested Monday water near peak

Flood warning issued for Boundary as Kettle River expected to rise to 20-year return level

RDKB: This amounts to a high flood risk for low-lying properties in the region

SD 51 students are allowed to return to school this week – under very different rules

School on June 1 and June 2 was cancelled due to the local state of emergency

UPDATED: 189 homes in Grand Forks area given evacuation orders

Homes are in the Nursery, Grand Forks Airport, Gilpin Rd., Johnson Flats and Granby Rd. areas

B.C. records four new COVID-19 cases, Abbotsford hospital outbreak cleared

Four senior home outbreaks also declared over, eight still active

RCMP, coroner investigate murder-suicide on Salt Spring Island

Two dead, police say there is no risk to the public

About 30% of B.C. students return to schools as in-class teaching restarts amid pandemic

Education minister noted that in-class instruction remains optional

Trudeau avoids questions about anti-racism protesters dispersed for Trump photo-op

Prime minister says racism is an issue Canadians must tackle at home, too

Bateman program encourages people to sketch outside, connect with nature

#MyNatureSketch initiative encourages Canadians to become ‘bright-eyed three year olds’

Be cautious expanding COVID-19 bubble, Dr. Bonnie Henry tells B.C.

Senior homes stay off-limits as schools, businesses reopen

How to safely drink water in areas impacted by flooding

Quality and safety of drinking water can be affected during and after floods

NDP getting COVID-19 wage subsidy ‘indirectly,’ B.C. Liberal leader says

B.C. NDP says Andrew Wilkinson is wrong about federal link

Most Read