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

Mission principal saves goat, praised as hero by kindergarten students

“Today I get to be the hero in their eyes, changing the world one stuck goat at a time”

String of purse snatches at Mill Lake in Abbotsford

Two women were mugged in a three week period starting Sept. 30

Great Gatsby event raises funds for Fraser Valley hospitals

Politicians, supporters and more gather in Harrison Hot Springs for fundraising bash

Snow-clearing facts: One fine issued last year for not clearing sidewalks in Abbotsford

City used 3,500 tons of salt last year, paid just 5 cents/pound

‘Over 100 Years of Mission’ showcases local history

Photographic exhibition held at the Mission Community Archives

VIDEO: UBC exchange students offered $1,000 to help with leaving Hong Kong

The university said 31 of its students were attending four universities in Hong Kong

Woman calls 911 to say she was late for train, asks Ontario police for ‘emergency ride’

Peel Regional Police received more than 180,000 improper calls so far this year

It could take you 218 years to save up for a house in this B.C. city

It would take 27 years in the most affordable city in the Lower Mainland

VIDEO: Giants drop 3-1 decision in Portland

Vancouver G-Men hit home ice in Langley next on Saturday, hoping to defeat Edmonton

UPDATE: Pedestrian dies after train collision in Cloverdale

Police say the investigation is in the early stages

‘Actors can play any roles’: Debate over ‘colour-blind’ casting after Victoria lawsuit

Tenyjah Indra McKenna filed a complaint over racially-motivated casting

Infants more vulnerable to measles than previously thought: Canadian study

Babies typically don’t receive the measles vaccine until they are 12 months old

Most Read