Re: Bombardier
Well the other shoe might be about to drop..
Bombardier CEO Resigns, Shares Plunge
By Robert Melnbardis
MONTREAL (Reuters) - Paul Tellier resigned as president and chief executive of train and plane maker Bombardier Inc. (Toronto:BBDSVB.TO - news) (Toronto:BBDB.TO - news), a year before his contract was to expire, the company said on Monday.
Bombardier shares plunged 21 percent to a new 10-year low on the surprise resignation of Tellier and two members of the board of directors.
His departure comes one year before the end of his three-year contract at the helm of Bombardier, the world's third-largest civil aircraft maker and No. 1 manufacturer of trains. Analysts said Tellier's resignation appeared to stem from a boardroom battle.
"It looks like there was a difference of opinion and that led to Mr. Tellier's departure," said Richard Stoneman, of Dundee Securities.
Bombardier's subordinate voting shares were down 54 Canadian cents at C$2.01 in Toronto shortly after the open of trade on Monday. Volume of more than 31 million shares made it the top trader.
Bombardier said Michael McCain and Jalynn Bennett had resigned as board members.
Tellier, 65, former president and chief executive of Canadian National Railway Co., and once Canada's top civil servant, had been appointed president and chief executive at Bombardier in January 2003.
In a recent interview with Reuters, Tellier had said he hoped to remain at the helm of Bombardier until the completion of a restructuring at its key aerospace and transportation units.
"I would like very much to stick around, everything being equal, until I feel that ... that we have passed the point of no return in the turnaround," Tellier had told Reuters, adding that he thought that point had not been reached in the company's market leading regional aircraft unit.
But on Monday, Bombardier said Tellier had indicated he wanted to leave the Montreal-based corporation when his contract expired at the end of next year.
"I understand the Board's concern that I would not be there for the long term to develop and execute strategies, and the need to reshape the management structure at this time," Tellier said in a statement.
Bombardier did not name an immediate successor to Tellier, who sold off the company's legacy snowmobile division, slashed the work force in both the plane and train units, and put the company on a track toward the $2 billion development of a new airliner seating 110 to 135 passengers.
Bombardier said it created a new office of the president that will regroup strategic and executive management responsibilities around the executive chairman, Laurent Beaudoin, and the presidents of its aerospace and transportation groups.
Beaudoin, former chief executive of Bombardier and part of the family controlling the company, will chair its office of the president.
He will be joined by Andre Navarri, president of Bombardier Transportation and Pierre Beaudoin, president and chief operating officer of Bombardier Aerospace, each of whom has been appointed executive vice president of Bombardier Inc.
Navarri and Pierre Beaudoin will also sit as board directors.
Looks like their class A and B are down around 20% this morning.
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