Second bidder for Air Transat says it is withdrawing C$14 per share offer

Group Mach says it is withdrawing its bid for Transat, stating the tour operator chose to ignore its proposal even though it featured a higher price than Air Canada's offer. Alfred Bugge, head of mergers and acquisitions at Group Mach, says Transat was well aware of the Quebec developer's C$14-per-share proposal last week but forged ahead with an Air Canada takeover agreement priced at $13 per share. Under the definitive agreement, Transat shareholders will convene by Aug 26 to vote on the Air Canada deal, valued at $520m. Until then Transat can accept competing offers that would have to be at least $14 per share on top of a $15m break fee for Air Canada, which could opt to match the superior bid. The current deal faces legal and regulatory scrutiny along with resistance from Transat shareholders. <br/>