The Globe and Mail - 13.03.2020

BUSINESSCLASSIFIED

TOPLACEANADCALL: 1 -866-999-923 7

EMAIL:[email protected]

LEGALS

FACEBOOKSPONSORED STORIES CLASSACTION:

YOU MAYBEAMEMBER OFACLASSACTIONLAWSUIT

AGAINST FACEBOOK

Youmaybeaclass memberiPaclassactioPlawsuitNilediPtheSupreme

CourtoNBritish ColumbiaagaiPst Facebook,IPc.byDeborahDouezoN

Victoria,B.C.OPMay 10 , 2018 ,theB.C. CourtoNAppealdecidedthe

la awsuitcPproceedasaclassactioP.TheBCSupremeCourtdirectedthat

this Poticebepublished.

Whatis theLawsuitabout?

TheplaiPtiNNallegesFacebookused

class members’ PamesaPd portraits

iP “SpoPsoredStories”without

theircoPsePt,iP violatioPoN the

PrivacyActsoNBritish Columbia,

SaskatchewaP,MaPitoba, aPd

NewNouPdlaPdaPdLabrador.

TheplaiPtiNNisaskiPgtheCourtto

orderFacebooktopaydamages

toclass members.PaymePtis

soughtwithoutprooN oNiPdividual

loss.This meaPsthatiN Facebook

isNouPd liable,damages willbe

assessedNortheclassasawhole.

Class membersthatdoPotoptout

oNthis lawsuit(see below) will Pot

be abletoseekdamagesNoraPy

allegedpersoPalloss.

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inthelawsuit?

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partiPthelawsuit.Thelawyers

appoiPtedbytheCourttorepresePt

theclass willoPlybepaid iNthe

claimsaresuccessNul.INthatoccurs,

thelawyers willasktheCourtto

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25 %to33.33%oNamouPts

recoveredoPbehalNoNtheclass.

They willalsoasktobereimbursed

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Doyouneed moreinformation?

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case is availableatwww.

braPchmacmaster.comaloPg with

theOrderoN theSupremeCourt

oNBritish ColumbiacertiNyiPgthe

actioP,aPdotherCourtdocumePts.

The CLASS LAWYERS are

ChristopherRhoPe, LuciaPaBrasil,

Avichay SharoP aPd Setareh

Khasha.TheycaPbereachedat:

• Email:[email protected]/
  [email protected]
  •TelephoP e:6 04 -65 4 -2999
  •Fax: 60 4 -68 4 -3 429
  •Mail: 1410 – 777 HorPbyStreet,
  VaPcouver,BCV 6 Z1S4

Are youaclass member?

ThelawsuitisbroughtoPbehalN

oN all residePtPaturalpersoPsoN

British Columbia, SaskatchewaP,

MaPitoba, aPdNewNouPdlaPdaPd

Labradorwho were members

oN Facebookat aPytimeduriPg

theperiodNromJaPuary1, 2011

to May30, 20 14 aPd(a)whoat

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registeredwithFacebook usiPg

their realPame, orhadaproNile

picturethatiPcludedaPidePtiNiable

selN-image, orboth;aPd(b)whose

realPame,idePtiNiableportrait, or

bothwereusedbyFacebookiP

aSpoPsoredStory.This “class”

is dividediPto two“Subclasses”:

aresidePtBCclassaPdaPoP-

residePtoutoNproviPceclass.

INyouNitthis deNiPitioP,youare

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youoptoutbyMay 10 ,2020.IN

youwaPttooptout,pleasesee

“WhatiNyoudoPotwaPttotake

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you–goodorbad.Tooptout,you

mustsePdawrittePrequestto:

BraPchMacMasterLLP

attP.:SarahCleary

141 0-777HorPbyStreet,

VaPcouver,BCV 6 Z1S4

Class members whowaPttoopt

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DIVIDENDS

Dividends

Notice is hereby given that the following dividends have been declared.

Issuer Issue RecordDate PayableDate Rate

Bombardier Inc. Pref. Series 2 March 31, 2020 April 15, 2020 Floating

Magellan Aerospace Common March 20, 2020 March 31, 2020 $0.105

Corporation

SNC-Lavalin Common March 13, 2020 March 27, 2020 $0.02

Group Inc.

Stella-Jones Inc. Common April 3, 2020 April 24, 2020 $0.15

FRIDAY, MARCH 13, 2020| THEGLOBEANDMAILO REPORTONBUSINESS| B3

Eric Martel will be quickly tested
asBombardier Inc.’snew chief
executive, with the company’s
share price falling to lows not
seen in more than a quarter-cen-
tury and its business prospects
clouded by the fallout from the
COVID-19 pandemic.
The possible pain that lies
ahead for the former Hydro-Qué-
bec boss could be every bit as
harsh as that faced by his prede-
cessor, observers say. With a cor-
porate shrinking under way that
will see Bombardier try to com-
plete the planned sale of its train
unit to France’s Alstom SA and
emerge as a pure-play business-
jet manufacturer next year, there
remains little room for error in
its final transformation toward a
less-indebted future.
Global financial contagion
caused by the novel coronavirus
outbreak could kill new orders
and throw off Bombardier’s
plans. The company could also
find itself a takeover target if its
share price fails to recover,
analysts said.
“It’s a pretty precarious posi-
tion,” said Isabelle Dostaler, dean
of business at Memorial Universi-
ty of Newfoundland. “We’re in
the middle of a crisis and it’s go-
ing to be difficult on airlines and
transportation. Stock markets
are going crazy. So it’s not look-
ing good at all. If [Mr. Martel]
does poorly, it’s not going to be
his fault.”
Bombardier shares shed near-
ly 23 per cent Thursday to close at

$0.64 on the Toronto Stock Ex-

change amid a broader market

sell-off caused by fears about the

impact from the coronavirus.

The stock has declined through

18 of the past 20 trading sessions,

hitting a low not seen since at

least 1995.

Mr. Martel will replace current

CEO Alain Bellemare on April 6,

Bombardier said in a statement

late Thursday. With Mr. Belle-

mare’s five-year turnaround plan

nearing completion, the board,

including Mr. Bellemare, unani-

mously concluded it was the

right time for a new leader to

take the helm, the company said.

The new CEO comes into a

company that is much smaller

and with a much simplified busi-

ness structure as Bombardier

sells or shuts down assets that

represented 65 per cent of its for-

mer revenue, including the train

business. His key challenge in the

months ahead is to finalize three

planned asset sales that are nec-

essary to meet coming debt ma-

turities starting next year.

But Mr. Martel takes over in

the throes of a global health

emergency.

And that threatens to dampen

demand for what will be the

company’s last remaining prod-

uct line: highly discretionary lux-

ury business jets.

“Business jet sales just don’t

do well in times of economic un-

certainty and scary stock market

gyrations,” industry consultant

Brian Foley wrote in Forbes.

“Some who were considering a

plane purchase will now wait and

see where things are headed,

looking for any semblance of fi-

nancial market stability before

pulling the trigger.”

Bombardier is somewhat

shielded from the economic tur-

moil because it has staked much

of its future profitability on the

all-new Global 7500, a US$75-mil-

lion plane that is sold out

through 2021 and tends to attract

buyers that are more immune to

economic shocks. But its smaller

and less pricey jets are more vul-

nerable as clients weigh spend-

ing cuts, especially if uncertainty

drags on.

One thing to watch is what

happens in the market for pre-

owned aircraft. Right now, the in-

ternational inventory for used

jets is tight, which means that if

people were to start selling their

planes, the system could absorb

that. If it persists, however, and a

glut of used planes floods the

market, that will affect sales of

new planes.

“Notwithstanding current

market volatility associated with

the coronavirus outbreak, we be-

lieve [investors] will need addi-

tional details on the growth po-

tential and resiliency of the busi-

ness jet division, the regulatory

risk around the proposed [train]

divestiture and Bombardier’s

strategy with respect to debt re-

payment before the stock starts

to recover,” Desjardins analyst

Benoit Poirier said.

Ultimately, Bombardier could

consider privatizing or divesting

the remaining business-jet unit

once it finalizes the train sale if

its stock performance does not

improve, Mr. Poirier said. The

company held talks with Textron

Inc. about a deal for its business-

jet franchise, but decided to div-

est its rail unit instead.

For Mr. Martel, it will be a re-

turn to Bombardier, where he

worked as an executive for more

than a decade. He was in charge

of the business-jet unit when Mr.

Bellemare was brought in as CEO

in 2015.

Although the two men have

known each other for a long

time, there was almost immedi-

ate friction as Mr. Bellemare

sought to impose changes that

other executives felt under-

mined their own work, said one

source familiar with the internal

dynamic at Bombardier. The

Globe and Mail is not naming the

source because they were not au-

thorized to speak about the mat-

ter.

Mr. Martel left soon after to

take the top job at Hydro.

BOMBARDIER (BBD.B)

CLOSE: 64¢, DOWN 19¢

NewBombardierCEOfacesdauntingchallenges

Ascompanyattemptsto

selltrainunitandfind

successinitsbusiness

jets,EricMartelisin

a‘precariousposition’

NICOLAS VAN PRAET

New Bombardier CEO Eric Martel is seen in Montreal last April. Mr. Martel is in a difficult position as the

company’s leader as he is taking over during a global health emergency.PAULCHIASSON/THECANADIANPRESS

T

he global market meltdown began as a
medical crisis. It is turning into a lead-
ership crisis.
Judging from research reports, blog
posts and tweets, many investors yearn to hear
policy makers deliver a simple reassuring
message. Something to this effect: We will all
work together to stop this virus, while support-
ing workers and companies through a tough
patch ahead.
Instead, Canadians are still waiting for word
about what measures Ottawa will take to cush-
ion the mounting blows from an imploding
stock market and a slowing global economy.
Tohiscredit,JustinTrudeauannounceda$1-
billion response fund this week to help finance
research, prevention and mounting medical
costs, but much broader measures to help peo-
ple and businesses are nearly certainly neces-
sary, especially as school closings
spread and stock prices plummet.
Among the ideas out there are
targeted help for parents who
may have to stay home to look af-
ter children, aid for small busi-
nesses that may hit a cash crunch,
as well as immediate financial as-
sistance for workers in the gig
economy who find themselves
out of work – and out of pay – be-
cause of the virus.
Sofar,though,Mr.Trudeauand
Finance Minister Bill Morneau
have offered few specifics about
what they are considering. And
with Mr. Trudeau retreating into
self-isolation because of possible
exposure to the virus, it is not
clear when more details will be
forthcoming.
It could be worse. People hop-
ing for strong leadership from the
White House were instead treated
this week to the disappointing
spectacle of U.S. President Donald
Trump slamming the door shut
on those nasty Europeans he sus-
pects of importing COVID-19 into
the United States.
Never mind that the World
Health Organization advises against travel
bansbecausetheyhindertheflowofmedicines
and other assistance. In Mr. Trump’s view, the
best way to stop what he calls a “foreign virus”
is to clamp down on the Italians and French.
After all, imposing a 30-day ban on many Eu-
ropeans is far easier than taking immediate ac-
tiontoaddresshisowncountry’sglaringlackof
new coronavirus testing.
To be fair, Christine Lagarde has failed to
shine either. The president of the European
Central Bank underwhelmed markets on
Thursday when she declined to cut already-
ultralow interest rates even further. Instead,
shesteppeduptheECB’sbond-buyingprogram
and offered cheap loans to banks to encourage
themtokeeplendinginareashithardestbythe
virus.

It was not exactly “whatever it takes” – the

famous pledge that Ms. Lagarde’s predecessor,

Mario Draghi, made during the euro-zone crisis

of2012,whenhepromisedtopreservetheeuro,

come what may. Anyone hoping for a commit-

mentofsimilarbravadohadtobedisappointed

by Ms. Lagarde’s measured package of nudges

and incentives. European stock markets kept

on tumbling after she spoke.

Muddying the waters even more, Ms. La-

garde insisted that the euro-zone’s central

bank was “not here to close spreads” between

borrowing costs for different euro-zone coun-

tries. Her comment threw a panic into fixed-in-

come traders, who immediately started dump-

ing Italiangovernment bonds. For Italy, a coun-

try facing a massive outbreak of the coronavi-

rus, the rise in borrowing costs that may result

from Ms. Lagarde’s comments is a serious blow.

The danger now is that the stumbles by the

likes of Mr. Trump and Ms. Lagarde, combined

with Mr. Trudeau’s lack of action, will stretch

already taut nerves and add to the mounting

sense that nobody is really in charge.

Investors have reason to be worried on that

score.

Last week, the U.S. Federal Reserve an-

nounced an emergency cut to its

key policy interest rate. A day lat-

er, the Bank of Canada an-

nounced its own rate reduction.

The Bank of England followed

suit this week.

The rate cuts (as well as the re-

lated stimulus measures by the

ECB) were all justified. The lack

of international co-ordination is

troubling, however. Why not an-

nounce all the measures simulta-

neously, to reassure global mar-

kets that policy makers are work-

ing smoothly together to tame

the virus’s impact?

The scattershot approach sug-

gests countries around the world

are struggling to agree on a uni-

fied response. That would sur-

prise no one, given the disparate

personalities in charge. Each is

facing a different configuration

of voters and a different set of

budget realities.

But the virus is shifting politi-

cal realities fast. Voters are nerv-

ous and nervous voters often

want change.

Only a week ago, most num-

bers-driven forecasting models

regarded Mr. Trump’s re-election as a near cer-

tainty. The logic was simple: U.S. presidents

nearly always get re-elected when unemploy-

ment and inflation are low, as they are now.

Thisweek,expectationsflipped.PredictIt,an

online market that lets participants bet on the

outcome of future political events, indicates

that Democrats are now favoured to win the

presidential election in November – the first

timesinceearlyJanuarythatMr.Trumphasnot

been regarded as the hands-down leader.

You can read the sudden shift in many ways.

Maybe it’s nothing more than a manifestation

of virus-induced anxiety. But maybe it’s also a

sign that people are eager for more impressive,

moreactiveleadership.Ifso,thepoliticalreper-

cussionsfromthevirusoutbreakarejustbegin-

ning to be felt.

Whenitcomestothecoronavirusoutbreak,

whatwe’redealingwithisaleadershipcrisis

IAN
McGUGAN

OPINION

Manyinvestors

yearntohearpolicy

makersdelivera

simplereassuring

message.Something

tothiseffect:Wewill

allworktogetherto

stopthisvirus,while

supportingworkers

andcompanies

throughatough

patchahead.

Instead,Canadians

arestillwaitingfor

wordaboutwhat

measuresOttawa

willtaketocushion

themountingblows

fromanimploding

stockmarketanda

slowing global

economy.

INSIDETHEMARKET