Bombardier (TSE:BBD.B) rose on Wednesday after Reuters reported the Canadian company is set to book a writedown on its CSeries program and announce that the government of Quebec will be investing in the narrowbody jet program
Citing several sources familiar with the matter, Reuters said the embattled Montreal, Quebec-based company will also permanently mothball its Learjet 85 program.
Shares rose 12.4% to C$1.63 at 1:57 p.m. in Toronto.
Bombardier will form a joint venture with the Quebec government on the CSeries jet program, the sources told the news agency.
The company has been looking at a wide range of options to help it fund its long-overdue and over-budget CSeries.
If a deal is reached, the Quebec government would be on the hook to fund half the final development costs on the new jet, the 110- to 160-seat commercial jet that is set to enter into service next year following a two year delay.
The governments of Quebec, Canada and Britain have previously made sizable financial contributions to Bombardier to help develop and sell the CSeries.
Quebec isn't the only government partner concerned about Bombardier. Northern Ireland's economy minister was meeting with senior company officials as part of a five-day mission to Montreal and Toronto.