AC and TRZ Agree to Terminate Arrangement

[JoeyBarton]

It would be great that AC confirm their intention once for all; so everyone could move on. Why wait if they don’t want it anymore?

So you are now convinced this deal will not go through and ready to move on yourself? Up until now it seems you were pretty certain it would happen. Worried about the stock being below 4$?

[The Raven]

If the deal is still ‘live’, which I suspect it’s not, it won’t be for $18/share.

[FL320]

It would be great that AC confirm their intention once for all; so everyone could move on. Why wait if they don’t want it anymore?

So you are now convinced this deal will not go through and ready to move on yourself? Up until now it seems you were pretty certain it would happen. Worried about the stock being below 4$?

I am convinced it will go through but at a renegotiated price. 4$ is a pretty good deal for any investor and AC won’t let it go into other hands for sure. I am not worried by the stock at all; it won’t change my lifestyle

[TFTMB heavy]

If the deal is still ‘live’, which I suspect it’s not, it won’t be for $18/share.

Can you point to what article in the arrangement agreement that would allow a reduction in the share price?

[Fanblade]

I think he is inferring what I did further up the thread. Just because the current deal expires does not mean a new deal won’t be struck.

Short term I think the parties will say not now. Medium term, if it made sense before it probably will again.

[TFTMB heavy]

I think he is inferring what I did further up the thread. Just because the current deal expires does not mean a new deal won’t be struck.

Short term I think the parties will say not now. Medium term, if it made sense before it probably will again.

If the deal expires we can expect a lower price should both parties decide to revisit it, that being said TS will entertain all buyers at that point. Now, from what I understand of the current agreement the price is set, a deal has been made with the shareholders for $18/share. TS has an obligation towards its shareholders, I don't see why they or how they can say "not now" as you put it.

[iflyroads]

Pretty anticlimactic.

Do they have to make an announcement today?

[Fanblade]

I think he is inferring what I did further up the thread. Just because the current deal expires does not mean a new deal won’t be struck.

Short term I think the parties will say not now. Medium term, if it made sense before it probably will again.

If the deal expires we can expect a lower price should both parties decide to revisit it......I don't see why they or how they can say "not now" as you put it.

If the deal expires, the parties may state they want to revisit the merger, at a later date. That is all I was stating.

Assuming the deal actually expired on the 27th, the silence so far is interesting. If the parties want to salvage, change or alter the deal without completely walking away, the first opportunity for that to happen is right now.

Im not calling the deal expired until the parties say so.

[Fanblade]

The silence only tells me they are negotiating something.

[Jean-Luc Monette]

Transport Canada’s report is still on Minister Garneau’s desk, and the EU Competition Board (or whatever name...) are still evaluating the dossier.

How can the offer not be extended?

[Fanblade]

Transport Canada’s report is still on Minister Garneau’s desk, and the EU Competition Board (or whatever name...) are still evaluating the dossier.

How can the offer not be extended?

Because someone may want to take the first legal opportunity, to leverage an adjustment, or walk away.

Both companies have a duty to their shareholders. They won’t and can’t just leave them hanging. Yet they are. The only reason for not publicly announcing an extension is that the extension is currently in limbo. That there is nothing to disclose either way. That ongoing discussions are taking place.

The reasons for that limbo status, or any possible alterations, must be kept behind closed doors for securities reasons. When a definitive outcome has been reached it has to announced to the public all at once.

It is possible that the definitive outcome will simply be an extension. It is also possible that the definitive outcome is something else.

[rudder]

Transat website now says Outside Date extended to October 27th.

https://www.transat.com/en-CA/corporate ... -investors

[altiplano]

Transat website now says Outside Date extended to October 27th.

https://www.transat.com/en-CA/corporate ... -investors

Interesting that it's one line of text on the website, not a press release for the announcement, and nothing from AC that I can see on the investor or media site.

I wonder if that was put up prematurely? I'm not sure of the OSC disclosure requirements on this, but given that it's a fundamental restriction on the deal I would imagine something more. Also previous extensions had press releases. Maybe we'll see something tomorrow?

[aerodude]

AC just officially closed the deal. 5$/share. To be concluded soon.

[drone_driver24]

https://stockhouse.com/news/press-relea ... air-canada

[Sharklasers]

AC just officially closed the deal. 5$/share. To be concluded soon.

The deal is far from closed.
Still subject to regulatory approval and another shareholder vote at the new price.
Then the real fun begins, BOTL for the TRZ pilots seems really fair now.

[Dry Guy]

"We believe that revised terms will provide the parties with greater incentives to address the concerns raised by regulatory agencies in order to obtain the regulatory approvals, including with respect to the offer of remedies which should provide a greater chance of obtaining the required approvals from regulatory authorities prior to the newly extended date of February 15, 2021 ," said Mr. Leblanc

Basically now that it's 75% off Air Canada might actually try to satisfy the regulatory bodies that have to approve the deal.

[altiplano]

$5.

Transat shareholders are taking a haircut here... AC shareholders too if they fill the shares for the share swap options. The big AT shareholders like Letko didn't like $14 before and it will be interesting to see how they vote this... Letko has significant AC pairings too though and fear is clearly in the drivers seat, I'll be interested to hear what the Transat CEO recommendation states. Plenty of fear that AT is going to flop if the deal doesn't go ahead no doubt. he just wants to walk at this point. Probably will get an AC BOD appointment for himself out of it.

Rovinescu is a shark.

[Sharklasers]

Letko is all but completely divested from TRZ and has been for months. Friday at the bell they owned 203000 shares of TRZ or about .54% of the total outstanding shares.
https://www.morningstar.ca/ca/report/st ... 0P00005TH4

[TFTMB heavy]

$5.

Transat shareholders are taking a haircut here... AC shareholders too if they fill the shares for the share swap options. The big AT shareholders like Letko didn't like $14 before and it will be interesting to see how they vote this... Letko has significant AC pairings too though and fear is clearly in the drivers seat, I'll be interested to hear what the Transat CEO recommendation states. Plenty of fear that AT is going to flop if the deal doesn't go ahead no doubt. he just wants to walk at this point. Probably will get an AC BOD appointment for himself out of it.

Rovinescu is a shark.

JME is in favour, he told me himself in an email.