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