WASHINGTON (Reuters) - Pierre Beaudoin is expected to step down as executive chairman of Canada's Bombardier Inc (TO:BBDb) in early 2016, according to a source familiar with discussions about the issue, but the company's chief executive dismissed the report.
The source, who was not authorized to speak publicly, said the move was still being discussed and it was not clear who would replace Beaudoin, a member of the family that controls the company. A decision could only be taken during a board meeting.
"I don't know where this is coming from," Chief Executive Alain Bellemare told reporters when asked about Beaudoin resigning as chairman.
Shares in Montreal-based Bombardier rose 9 percent on Friday following news that the company's CSeries 110-seater plane received certification from Canadian regulators. Shares were trading 8.2 percent higher at $1.45 in late morning.
Bombardier stunned investors in February when it replaced Beaudoin as chief executive with Bellemare, a former executive with United Technologies Corp (N:UTX), who has moved to shore up the company's financial situation since taking over.
In recent months, Bombardier secured a $1 billion dollar cash infusion from the Quebec government for a nearly 50 percent stake in the CSeries, which is years late and billions of dollars over budget. The company also received a cash infusion for its rail unit.