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

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