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Bombardier chief to leave company

Shares in train and plane-making giant Bombardier have fallen to a 10-year low following the departure of its chief executive and two members of the board.

Paul Tellier, who was also Bombardier's president, left the company amid an ongoing restructuring. Laurent Beaudoin, part of the family that controls the Montreal-based firm, will take on the role of CEO under a newly created management structure. Analysts said the resignations seem to have stemmed from a boardroom dispute. Under Mr Tellier's tenure at the company, which began in January 2003, plans to cut the worldwide workforce of 75,000 by almost a third by 2006 were announced. The firm's snowmobile division and defence services unit were also sold and Bombardier started the development of a new aircraft seating 110 to 135 passengers.

Mr Tellier had indicated he wanted to stay at the world's top train maker and third largest manufacturer of civil aircraft until the restructuring was complete. But Bombardier has been faced with a declining share price and profits. Earlier this month the firm said it earned $10m (£19.2m) in the third quarter, down from a profit of $133m a year ago. "I understand the board's concern that I would not be there for the long-term and the need to develop and execute strategies, and the need to reshape the management structure at this time," Mr Tellier said in a statement on Monday. Bombardier said restructuring plans drawn up by Mr Tellier's would continue to be implemented. Shares in Bombardier lost 65 Canadian cents or 25% on the news to 1.90 Canadian dollars before rallying to 2.20 Canadian dollars.