SNC-Lavalin execs ponder company break-up at private shareholder luncheon

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Executives at SNC-Lavalin Group Inc. continue to ponder a Plan B that could see the company break up ahead of a potential criminal conviction.

David Taylor of Toronto-based Taylor Asset Management, a shareholder of SNC-Lavalin, said the embattled engineering and construction firm's CEO and chief financial officer discussed spinning off assets -- which could include U.K.-based WS Atkins -- at a private luncheon hosted by TD Securities in Toronto.

"They've got great assets within that are being punished and their good assets aren't being valued properly. So they sort of hypothetically talked about crystallizing that value, and the only way you can really do that is to sell," Taylor said. The discussion floated an alternative to a possible plan that SNC-Lavalin laid out for federal prosecutors last fall where the company would split in two, move its offices to the United States within a year and eventually eliminate its Canadian workforce if it didn't get a deal to avoid criminal prosecution.

SNC-Lavalin said in an email that it "continues to evaluate all possible scenarios to create maximum value for company shareholders."

 

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