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Johnboy

Air Canada To Purchase Air Transat

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12 minutes ago, blues deville said:

I think all those involved with this deal will want TS to end up with AC. No other group has the experience or background to have this operation join or merge into their company. 

Except that the final decision is up to the TRZ shareholders.

If the outcome is inevitable (sale of shares) then the only metric that matters to the shareholders is who will pay the most for a share.

There are no future considerations for a TRZ shareholder.

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1 hour ago, rudder said:

Except that the final decision is up to the TRZ shareholders.

If the outcome is inevitable (sale of shares) then the only metric that matters to the shareholders is who will pay the most for a share.

There are no future considerations for a TRZ shareholder.

That's true, but the board's due diligence would include an assessment of the certainty that a deal can be concluded with the highest bidder. If it believes the Quebec government will not provide Mache with the required financing and that the deal will not proceed without it, then the AC bid remains the only "real and viable" one of the table, notwithstanding the shareholders' wishes.

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Quebec government will almost certainly want a part in a "Quebec company". They have already signalled their willingness to invest to keep the company and jobs in Quebec. The board will also likely endorse such a deal as it would have the provincial government "invested" in the success of the company. Most staff will also likely prefer this as it will transform Transat into a higher profile company with more funds to secure more assets and growth.

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44 minutes ago, MD2 said:

Quebec government will almost certainly want a part in a "Quebec company". They have already signalled their willingness to invest to keep the company and jobs in Quebec. The board will also likely endorse such a deal as it would have the provincial government "invested" in the success of the company. Most staff will also likely prefer this as it will transform Transat into a higher profile company with more funds to secure more assets and growth.

I'm not so sure about the last part.  What value is there in a company having a higher profile if it continues to lose money?

I have no idea in whose hands TS will end up and I'm well aware of how messy airline mergers are.  I'd still wager that an amalgamation with AC would return TS to profitability.

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What does a real estate company know about running an airline and tour company?

 

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18 hours ago, FA@AC said:

I'm not so sure about the last part.  What value is there in a company having a higher profile if it continues to lose money?

I have no idea in whose hands TS will end up and I'm well aware of how messy airline mergers are.  I'd still wager that an amalgamation with AC would return TS to profitability.

Did Air Canada's last merger make it profitable? As I recall it filed for bankruptcy and cancelled all its shares. Few years later, it almost went bankrupt again! It seems that mergers don't necessarily make companies profitable, sound business plans do. I can't say with any certainty which route would be better for Transat, but judging by recent comments, and considering the "Quebec factor", I'd say a deal that has the government of Quebec invested in it and supposedly keeps the jobs in Quebec will garner more support.

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