Air Canada offers to buy Transat Airline for US$387m

Air Canada said it’s in exclusive talks to buy one of the country’s largest travel tour operators, Transat A.T., for about C$520m (US$387m) amid a wave of consolidation in the Canadian airline industry. The airline said it was prepared to pay $13 a share for the Montreal-based company, a 23% premium to Transat’s closing share price Wednesday. The offer is more than double Transat’s price April 30 when it announced it was in talks with at least one potential buyer. The move comes just 3 days after WestJet Airlines agreed to be acquired by Canadian private equity firm Onex Corp. "A combination with Transat represents a great opportunity for stakeholders of both companies," said CE Calin Rovinescu. "The acquisition presents a unique opportunity to compete with the very best in the world when it comes to leisure travel." <br/>