SNC-Lavalin Wins Caisse Support as Trudeau Controversy Deepens

  • Stock rallies after fund pledges to be ‘rock of support’
  • SNC had tumbled over allegations of political intervention

SNC-Lavalin Group headquarters in Montreal.

Photographer: Christinne Muschi/Bloomberg
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SNC-Lavalin Group Inc., the Canadian engineering giant embroiled in a controversy that has reached into the prime minister’s office, won a show of support from its largest shareholder.

The Caisse de Depot et Placement du Quebec will be a “rock of support,” for SNC, said Michael Sabia, chief executive officer of the pension fund manager. Sabia said he continues to back management and is confident in SNC’s long-term potential. The stock jumped as much as 5.5 percent.