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SNC said that all parties have agreed to an expedited process with a hearing scheduled for June 21, and a ruling expected shortly thereafter. Once a decision is released, SNC will complete the sale and that Cintra and CPPIB have an agreement to adjust their ownership interest to comply with the court’s decision. SNC would still own 6.7 per cent of the road.



Benoit Poirer, an analyst with Desjardins, noted that depending on the timing of the court ruling, the funds may not be received until after the second quarter.

In an interview with Bloomberg News earlier this week, Mark Machin, president of the CPPIB declined to comment on the price of the 407 sale; but he said there are few opportunities to invest in infrastructure projects in Canada as everything “is priced to perfection.”

The 407 sale may prove to be an exception.

For SNC-Lavalin, the complication to the sale is adding more strain on a company whose stock has declined 42 per cent since January, and by 20 per cent since the start of May to $27 per share as of Friday afternoon.

“Unless somehow they can turnaround the stock and convince or show some solid results, I think management’s ability to remain in place is very questionable,” said Michael Willemse, an analyst with Taylor Asset Management and investor, adding his firm owns less than two per cent of the company.

But SNC-Lavalin’s largest shareholders, including Caisse du Depot et Placement du Quebec, have not publicly voiced such concerns.

Some analysts have said the company’s shares now have dropped so low that there’s bound to be upside.

“Stepping away now when shares are still at 2009 levels does not make much sense to us,” Maxim Sytchev, an analyst National Bank Financial wrote on Friday. The bank has a target price of $47 for the company.

The SNC stock closed virtually flat on the Toronto Stock Exchange at $26.74 per share, close to its 52-week low of $26.01.

• Email: gfriedman@nationalpost.com | Twitter: GabeFriedz