Underneath the fraud and bribery allegations dogging SNC-Lavalin Group Inc. is really a \”stunningly cheap\” stock that may turn the organization into takeover bait, analysts and shareholders say, possibly even attracting Warren Buffett.
The Montreal-based engineering and construction giant will release its fourth-quarter results on Thursday; management is not likely to say much concerning the criminal corruption charges that were laid through the RCMP last month. However, an update on planned asset sales and SNC’s 2015 outlook could provide more clarity about its future, based on Maxim Sytchev, managing director and head of research at Dundee Capital Markets.
In particular, Mr. Sytchev said he\’ll be listening to have an update on the company\’s plan to sell its stake in 407 International Inc., the operator of the 108-kilometre toll road within the Toronto region. Some estimates place the value of SNC\’s 17% stake up to $3 billion.