Transat rejects takeover bid from billionaire investor

Transat, the parent of Canadian holiday specialist Air Transat, is publicly rejecting an unsolicited potential takeover bid as the company waits for regulatory approval of its sale to Air Canada. Transat says on 12 January that contrary to media reports, an outside investor is not offering a premium on the price that had been agreed with its Montreal-based competitor, and that the new proposal lacks sufficient financial backing to keep Air Transat operational through 2021. The airline adds that the offer by billionaire investor Pierre Karl Peladeau is merely a public relations ploy. “This offer, without demonstrated committed financing, appears designed to attempt to adversely influence the regulatory approval process by suggesting that an alternative exists, should the regulatory authorities choose to reject the arrangement between Transat and Air Canada,” says Jean-Yves Leblanc, president of the special committee of the Transat Board of Directors. “We continue to believe that Air Canada’s proposal continues to be the best option for Transat’s future, especially in the context of the pandemic and its devastating effect on airlines,” he adds. Canadian media had reported that Peladeau made the offer to buy Transat should the current planned to tie-up with the country’s legacy carrier fall afoul of competition authorities in Canada and Europe. According to the reports, he has allegedly requested the government of Canada to reject the acquisition, and also purportedly offered C$6 per share, which is 20% more than the C$5 per share that Air Canada will pay. Transat says on 12 January that this is false. <br/>