The head office of SNC Lavalin are seen Thursday, February 19, 2015 in Montreal. (File photo by THE CANADIAN PRESS)

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

A woman wearing a protective face mask to curb the spread of COVID-19 walks past a mural in Victoria, B.C., on Monday, Dec. 7, 2020. THE CANADIAN PRESS/Marissa Tiel
115 new COVID-19 cases, no new deaths in Interior Health

There are now a total of 4,970 cases in the region

One of the renovated VWs that has served as the inspiration for Wood's idea for a VW village to redefine camping. (Jeremiah Woods photo)
Golden entrpreneau walks away with a deal from Dragon’s Den

Camping in the Woods combines a love of the outdoors and for classic VW vehicles

Trees destroyed a Shoreacres home during a wind storm Jan. 13, 2021. Photo: Submitted
Shoreacres resident flees just before tree crushes house

Pamala DeRosa is thankful to be alive

An example of a snow sculpture that can be submitted to the Rotary youth contest. (File photo)
Rotary Youth Skills program puts on snow sculpture contest

It’s the capstone project for the second round of youth in the program

Brett Forsythe battles it out in a game of singles pickleball on ice at Okanagan Training Rink Thursday, Jan. 7 in support of the Vernon Food Bank. (Jennifer Smith - Morning Star)
Pickleball play hits the ice in Okanagan

Rivals battle it out in support of the food bank

A rendering of the proposed development, called 2020, adjacent to other currently underway projects in the area. (Contributed)
Proposed 46-storey tower dubbed ‘2020’ would be Kelowna’s tallest building

The building was proposed two days after council approved a 42-storey tower on Leon Avenue

  RCMP. (Phil McLachlan - Black Press Media file)
‘Dangerous situation’ inside busy Kelowna store prompts police presence

27-year-old man apprehended after threatening to harm himself inside store

Prime Minister Justin Trudeau listens to a question during a news conference outside Rideau cottage in Ottawa, Friday, January 8, 2021. THE CANADIAN PRESS/Adrian Wyld
Trudeau says Canada’s COVID vaccine plan on track despite Pfizer cutting back deliveries

Canadian officials says it will still likely receive four million doses by the end of March

City of Salmon Arm Coun. Chad Eliason goes public with the information he went to Mexico over Christmas. (Contributed)
Salmon Arm councillor travels to Mexico over Christmas holiday

Politician says he regrets decision and didn’t consider the ramifications

Letisha Reimer died Nov. 1, 2016 after being stabbed at Abbotsford Senior Secondary.
No evidence that killer was in ‘psychotic state’ during Abbotsford school stabbing: Crown

Second day of closing arguments at ‘not criminally responsible’ hearing for Gabriel Klein

Kelowna RCMP precinct. (Michael Rodriguez - Capital News)
Kelowna Mountie transferred, fined after pointing gun at another officer

Const. Kristine Roesler argued she handled the gun safely and did it in the spirit of ‘dark humour’

Alan Davidson was sentenced to almost six years for abusing seven boys in the late 1970s and early 1990s. (Canadian Press file)
Full parole granted to former Mountie, sports coach convicted of sex abuse of boys

Alan Davidson convicted of abusing boys in B.C. and Saskatchewan in late ’70s, early ’90s

Most Read