RBC Fund urges Aimia to accept bid to avoid ‘existential crisis’
One of Aimia’s biggest investors has some simple advice for the frequent-flyer program: Say yes to an unsolicited takeover from a group led by Air Canada to escape an “existential crisis.” “It behoves the board to negotiate the very best deal they can for shareholders and other parties, but at the end of the day to not consummate something here would be suicidal,” said Hanif Mamdani, who runs a hedge fund at a unit of Royal Bank of Canada. Mamdani described the C$250m (US$191m) cash offer for the Aeroplan loyalty program as a “turn-key solution” to most of Aimia’s biggest problems. Aimia has been in trouble since May last year when Air Canada said it would withdraw from Aeroplan and start its own rewards plan in 2020. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-07-31/star/rbc-fund-urges-aimia-to-accept-bid-to-avoid-2018existential-crisis2019
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RBC Fund urges Aimia to accept bid to avoid ‘existential crisis’
One of Aimia’s biggest investors has some simple advice for the frequent-flyer program: Say yes to an unsolicited takeover from a group led by Air Canada to escape an “existential crisis.” “It behoves the board to negotiate the very best deal they can for shareholders and other parties, but at the end of the day to not consummate something here would be suicidal,” said Hanif Mamdani, who runs a hedge fund at a unit of Royal Bank of Canada. Mamdani described the C$250m (US$191m) cash offer for the Aeroplan loyalty program as a “turn-key solution” to most of Aimia’s biggest problems. Aimia has been in trouble since May last year when Air Canada said it would withdraw from Aeroplan and start its own rewards plan in 2020. <br/>
