MONTREAL — Shares of Bombardier Inc. rebounded more than 20 per cent after hitting a multi-year low following a regulatory review of the company’s executive stock disposition plan.
The Montreal-based company’s stock gained 34 cents or 20.4 per cent at $2.01 in midday trading on the Toronto Stock Exchange.
The increase essentially put the stock back to the level it was at before Friday’s dramatic decrease to $1.58.
Even at the current level, Bombardier’s shares have lost half their value in the past month and are down 16 per cent from their closing price after it disclosed free cash flow guidance for 2018 and 2019 that surprised and disappointed analysts.
Quebec’s financial market regulator announced Thursday it is reviewing Bombardier’s executive compensation plan, calling on the company to suspend all related trades, which it agreed to.
Bombardier has said that the plan — announced last August shortly before its share price embarked on a three-month descent of more than 60 per cent — allows senior executives to sell shares in some circumstances as an incentive in performance-based compensation.
Companies in this story: (TSX:BBD.B).
The Canadian Press