The Globe and Mail reports in its Thursday edition that Montreal real estate developer Group Mach Inc. has pulled its offer to buy Transat AT, a move that clears the way for Air Canada, which has an agreement to buy the airline and travel company at a lower price. The Globe's Eric Atkins writes that Alfred Bugge, Mach executive vice-president, said he is unhappy with the sales process, adding that Transat would not discuss his company's higher offer of $14 a share, nor previously disclose it had signed a "mutual confidentiality and standstill agreement" with Air Canada on Feb. 1. "They completely ignored our proposal," Mr. Bugge told The Globe. "How could [Transat board members] look at themselves in the mirror and say, 'We properly discharged our fiduciary duties to act in the best long-term interests of Transat shareholders' when they had before them a $14 offer proposal that was going to guarantee the success of Transat in the longer term." Transat shareholders will vote on Air Canada's takeover offer of $13 a share, or $520-million, by Aug. 26, according to a final agreement. The takeover requires two-thirds approval of shareholders, which means a combination of a few large investors could still block the deal.
© 2019 Canjex Publishing Ltd. All rights reserved.