|Bid||15.26 x 0|
|Ask||15.32 x 0|
|Day's Range||15.13 - 15.37|
|52 Week Range||4.50 - 17.00|
|Beta (3Y Monthly)||1.12|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Air Canada (TSX:AC) will face an additional level of government scrutiny as it seeks to acquire Transat (TSX:TRZ), delaying the deal by as much as nine months. Transat also offers cargo services, which accounted for a portion of the C$135 million it recorded as "other" revenue in 2018.
(Bloomberg) -- After battling a rival bid, Transat A.T. and Air Canada now have one more thing to worry about. The gap between Transat’s share price and Air Canada’s takeover bid is sitting at the widest ever -- indicating investors aren’t confident the deal will get done.Transat’s stock fell as much as 5.9% Tuesday to C$15.03 ($11.33), the biggest drop since early July. That’s nearly C$3 below Air Canada’s offer of C$18 a share or C$720 million, which was raised earlier this month in an attempt to fend off an unsolicited bid from Quebec real-estate developer Group Mach Inc.The tour operator’s shareholders voted 95% in favor of the Air Canada bid last Friday. It’s now subject to other closing conditions, including approval under the Canadian Competition Act, the Canada Transportation Act and European Council regulations.Canada’s transport minister Marc Garneau said Monday that officials need until May to review the proposed acquisition in order to ascertain whether the deal is in the best interest of the public.The competition review is anticipated “to be the most strenuous given the overlap of the companies in Montreal and Quebec markets,” AltaCorp Capital analyst Chris Murray said in a recent note. “The upcoming federal election could also expose the transaction to heightened levels of political discourse, which could make regulators reticent to approve relevant reviews.”However, Murray said he believes the deal will ultimately get the required approvals and will close by 2020.Scotiabank analyst Konark Gupta agreed that the deal will eventually get done but added that the “Competition Act approval could be relatively more tedious compared to other regulatory and government approvals” due to substantial overlap between the two companies in sun destinations and transatlantic markets.(Updates with Tuesday’s share move in second paragraph.)\--With assistance from Divya Balji.To contact the reporter on this story: Kristine Owram in Toronto at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Divya BaljiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Air Canada (TSE:AC) will spend an additional C$200 million to buy Transat A.T. (TSE:TRZ) to win the support of the Canadian tour company's largest shareholder. (A Canadian dollar is worth US$0.76.) Air ...
Air Canada, Canada's largest airline, raised its offer for Transat by 38.5% to C$18.00 per share on Sunday, winning support from its largest shareholder Letko Brosseau, which holds about 19.3% of shares. Amar Pandya, a senior investment analyst and portfolio manager for Vancouver-based PenderFund Capital Management, would not specify how the company would vote on Air Canada's offer.
Air Canada (TSE:AC) will acquire Transat A.T. (TSE:TRZ), the parent company of Canada's third-largest airline, strengthening its position as the country's dominant carrier. The companies announced on ...
Air Canada's bid to buy Canadian tour operator Transat AT would boost its leisure travel business at a time when the carrier faces a potential turnaround in rival WestJet Airlines, but the deal could attract regulatory scrutiny. Canada's largest airline said on Thursday it is in exclusive talks to buy the parent company of leisure carrier Air Transat in an all-cash deal valued at C$520 million ($387.5 million), marking the second aviation deal in Canada this week. Air Canada shares were up 1.7%.
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Canada's Air Transat (TRZ.TO) could expand a partnership deal with the airline arm of British tourism group Thomas Cook (TCG.L) to include codesharing and interlining, the boss of the Canadian carrier said. Codesharing is a way of airlines selling each other's tickets and then sharing passengers on a flight offered by the partner airline, while interlining involves partner airlines operating one connection on a two-leg journey. Thomas Cook declined to comment.