PHOTO PHOTO – The Bombardier logo can be seen during the LABACE Conference and Exhibition Fair at Congonhas Airport in Sao Paulo, Brazil on August 14, 2018. REUTERS / Paulo Vhitaker
(Reuters) – The Canadian province of the Quebec Securities Supervisor said on Thursday that it had asked Bombardier Inc. (BBDb.TO) to stop trading in shares in accordance with a plan that was set up to facilitate the sale by certain senior executives in the company.
Author des marches financiers (AMF) said in a statement released after the markets closed in order to "review" transactions and "various announcements" related to Bombardie's creation of an automatic securities distribution plan on August 15th.
Automatic placement plans allow managers with the insider skills to sell their shares on the basis of pre-arranged instructions when they do not possess any material undisclosed information. The Bombardier Plan has enabled certain executives to sell their shares as part of their overall performance-based compensation. (bit.li / 2TdkbeG)
The action of the aircraft and driver dropped five percent in Toronto on Thursday before the AMF statement, closing at $ 2.09.
Bombardier's actions fell after the company announced a disappointing free cash flow forecast on November 8, sending its shares to more than 23 percent a day.
The AMF would not indicate on Thursday why it had taken these steps with regard to the plan. She asked the company to suspend all the securities sale according to the plan until further notice and notify the executive broker.
Bombardier, headquartered in Montreal, said in a statement that it intends to "fully cooperate with AMF in its review" and will "suspend all securities sales" in connection with the "up to date" plan.
Reporting Laharee Chatterjee to Bengaluru and Allison Lampert in Montreal; Editing Grebler Day