Boeing? Here is what Michael Sabia CEO of La Caisse de dépôt et placement du Québec said...
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Quebec's largest pension fund has dismissed as "absolute nonsense" claims by Boeing Co that its US$1.5B investment in Bombardier rail business amounted to unfair subsidies. Caisse de depot et placement du Quebec's CEO Michael Sabia didn't hold back any punches, saying that the U.S. aerospace company, was itself a recipient of state aid.
"I guess the guys at Boeing are so used to being subsidized by the defence department in the United States that they can't understand what a subsidy is anymore because they live off them. They've got to build highways for the Brinks trucks that go between Washington DC and Chicago every day. They're wearing out the highways."
The U.S. International Trade Commission last month gave approval to the U.S. Commerce Department to begin preparing anti-dumping and anti-subsidy duties against new jets from Bombardier.
The Caisse has a duel mandate both to maximise returns for depositors and support economic growth in the Canadian province.
Sabia said the Caisse operated independently of the Quebec government and the decision to invest in Bombardier was a commercial one. "We have negotiated something that has no downside risk and unlimited upside exposure. Give me another dozen. Give me 20 of those," he added.