Kip Powick Posted January 12, 2005 Share Posted January 12, 2005 Possibly selling Aeroplan/Jazz/Maintenance Globe and Mail Link to comment Share on other sites More sharing options...
dagger Posted January 12, 2005 Share Posted January 12, 2005 Possibly selling Aeroplan/Jazz/Maintenance Globe and Mail Possibly selling "part" of Aeroplan/Jazz/Maintenance Link to comment Share on other sites More sharing options...
Guest V1 Posted January 12, 2005 Share Posted January 12, 2005 I smell a rat "one of Genuity's partners is former Air Canada chief restructuring officer Calin Rovinescu,: Link to comment Share on other sites More sharing options...
Guest directlaw Posted January 12, 2005 Share Posted January 12, 2005 The bankers will likely be proposing an individual IPO for each division will they not? All these companies will still remain under the ACE holding company but will be listed separately on the TSX. The idea being that the sum of the parts is greater than the whole. CP did this what.....2 years ago? Link to comment Share on other sites More sharing options...
dagger Posted January 12, 2005 Share Posted January 12, 2005 The bankers will likely be proposing an individual IPO for each division will they not? All these companies will still remain under the ACE holding company but will be listed separately on the TSX. The idea being that the sum of the parts is greater than the whole. CP did this what.....2 years ago? Don't assume the Globe and Mail is correct. IPOs are only one option. Aeroplan might be better -and ACTS would certainly be better off - with a single big investor that will bring in business expertise. A single investor/partner might grow AP faster. I also think with Aeroplan's growth prospects, AC will be looking for a very rich valuation if it goes the IPO route. I see Jazz as the most likely Income Trust IPO because of the power by the hour relationship. Link to comment Share on other sites More sharing options...
Guest Posted January 12, 2005 Share Posted January 12, 2005 IPO's are to raise cash. Selling company assets is to raise cash. Maybe a cash problem? Time will tell. Link to comment Share on other sites More sharing options...
Guest directlaw Posted January 12, 2005 Share Posted January 12, 2005 extracting full value Link to comment Share on other sites More sharing options...
dagger Posted January 12, 2005 Share Posted January 12, 2005 IPO's are to raise cash. Selling company assets is to raise cash. Maybe a cash problem? Time will tell. This was all telegraphed in the restructuring plan. AC wants to remove the GECAS debt because it has more convenants on it than conventional debt. The window for repaying that debt opens shortly. AC also will be taking delivery shortly of CRJ-705s and EMB-175/190s. AC wants to put some cash - as opposed to debt - on some or all of those planes. Secondly, the valuations on AC's various divisions is greater than the current ACE stock valuation, and there is a belief that selling part shares of assts not only raises cash, but also raises the underlying value of the stock because Aeroplan is expected to be a fast-growing business. If Aeroplan stock rises, it will raise AC's share price (or buttress it in the event the airline business is having a tough year.... I know, that never happens.) Link to comment Share on other sites More sharing options...
Guest Posted January 12, 2005 Share Posted January 12, 2005 Hey Dagger, Only half of the debt was resolved under CCAA. Lots of services stung in the CCAA deal. Plus the impending court suits with other carriers. Could come back to haunt AC in the future, from what I hear. Link to comment Share on other sites More sharing options...
dagger Posted January 12, 2005 Share Posted January 12, 2005 Hey Dagger, Only half of the debt was resolved under CCAA. Lots of services stung in the CCAA deal. Plus the impending court suits with other carriers. Could come back to haunt AC in the future, from what I hear. Only half the debt? Wrong. AC had $12 billion in debt, now has $4 billion, of which three-quarters is in the form of forward lease obligations. Lots of services stung in CCAA? And what is your point? The leases have been renegotiated, services are being provided. Was everybody thrilled by getting a haircut? No. Are suppliers providing AC with services? Yes. Again, what does this have to do with doing an IPO? The impending court suits with other carriers? Such as, the Westjet suit? What others do you have in mind? Could come back to haunt AC? Again, how, and what does this have to do with the process under way? As a matter of fact AC is in such dire straits that Boeing and Airbus have practically taken up residence at AC HQ pitching new planes to AC. Link to comment Share on other sites More sharing options...
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