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

Just Posted

Unhealthy smell at Abbotsford elementary school to be subject of next school board meeting

Dec. 3 meeting will have report from district’s organizational health and safety department

Abbotsford Senior hosting Big Ticket tournament finals

Basketball tournament featuring 64 high school teams starts next week

Snow appears in forecast for next week in Fraser Valley

Extreme weather shelter in Hope could be open by Monday

Westbound vehicles gridlocked on Highway 1 from crash in Langley

Estimated wait time to get past 248th Street is over an hour from Bradner Road

Bunny ebola, toxic lakes and ‘abortion storm’ all revealed in little-known local publication

Abbotsford’s Animal Health Centre publishes revealing newsletter three times a year

Driver escaped uninjured as car burst into flames on Nordel Way

It happened at about 7:30 p.m. Tuesday in North Delta, just west of Scott Road

Distracted driving tickets not for ICBC revenue, B.C. minister says

Minister Mike Farnworth calls SenseBC analysis ‘nonsense’

CN Rail strike and lack of trucking alternatives stoke forest industry fears

Companies calling on the federal government to ‘do everything in its power’ to end the strike

Prime Minister Justin Trudeau unveils new Liberal cabinet

Pivotal role in his new cabinet for a minority-government era goes to Chrystia Freeland

B.C. mom, kids on bike turned away from Tim Hortons drive-thru

Car-free for years, Charity Millar ‘felt gross’ being denied service

B.C. woman puts call out for 10,000 personal, heartfelt Christmas cards for the homeless

Christmas Card Collective enters into third year of making spirits bright

No turn signals, double-parking among top concerns for B.C. drivers: poll

Two-thirds of B.C. drivers said that not using turn signals was their biggest pet peeve

Man accused in fatal Shuswap church shooting also charged with arson

Parmenter family home badly damaged by fire a month before killing

Most Read