Article content continued

“People are circling. It’s a big prize, it’s worth having,” said a source, who spoke on condition of anonymity. “The conversations have been informal, rather than direct overtures.”

The stock gained 2 per cent to $46.51 at 11:24 a.m. at the close in Toronto, the highest since Nov. 3.

A primary concern among potential bidders is the 10-year ban on federal public works contracts that SNC-Lavalin could face if it is convicted of criminal corruption charges laid by the RCMP in February against the firm and two of its corporate affiliates. The risk of losing a decade of government work has been a key reason why the overtures have so far remained informal.

The charges — one count of bribery under Canada’s Corruption of Foreign Public Officials Act and one count of fraud — are both linked to SNC-Lavalin’s activities in Libya over a 10-year period ended in September 2011. The company has insisted that it is not guilty of the charges, and attributes the wrongdoing to individual executives who have since been dismissed and who face separate criminal charges.

People are circling. It’s a big prize, it’s worth having

So far, sources said that SNC-Lavalin has not been receptive to the propositions. “Acquirers have shown up at the door to say ‘how do we engage in a conversation because we want to buy,’ and they are getting snowballed a little bit,” said one source close to the discussions.

A spokesman for SNC-Lavalin responded to inquiries Tuesday by email, saying the company “is not engaged in any discussions of this nature with any companies.” When asked whether the struggling engineering giant has received solicitations from potential suitors, Louis-Antoine Paquin, manager of media relations, replied “all I can say at this point is that we are not engaged in any discussions with anybody.”