Air Canada and Transat announce Updated Purchase Price at $5 per share

Discuss topics related to Air Transat.

Moderators: Sulako, lilfssister, North Shore, ahramin, sky's the limit, sepia, I WAS Birddog

Post Reply
tsgas
Rank 7
Rank 7
Posts: 532
Joined: Sun Feb 29, 2004 12:53 pm

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by tsgas »

FL-280 wrote: Wed Jan 15, 2020 2:58 pm They are not giving up the scope clause, just limiting what TS pilots can do. The benefit, TS pilots wont be able to touch a mainline aircraft..... thats where the fuss is. The senior ac pilots that have waited a long time for that wb upgrade would let that pass in a heartbeat.
It would be a hybrid of what is going on in Europe, AC will take note of all that....

I truly believe... this is where this is going to go. Its socialized bidding at rouge too, trust me its a win win. No all out war, no 8 years in court. Both parties loose nothing. TS pilots stay vacation pilots with a slightly better wage, AC pilots remain mainline pilots and vacation pilots if they choose to.
Slightly better wage in this recession/depression , not very likely.
---------- ADS -----------
 
Gilles Hudicourt
Rank 10
Rank 10
Posts: 2226
Joined: Thu Mar 22, 2012 5:51 am
Location: YUL

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Gilles Hudicourt »

The Raven wrote: Tue Jul 28, 2020 3:47 am If Air Canada really wanted Transat, instead of paying $18/share, why not go in there today and buy shares at $5? Hmmm, I think I answered my own question.
You are assuming that those who own shares want to sell them. Even if you see that the shares are listed at $5, it does not mean there are any for sale........
---------- ADS -----------
 
FL-280
Rank 5
Rank 5
Posts: 305
Joined: Fri Jan 20, 2017 6:45 pm

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by FL-280 »

tsgas wrote: Tue Jul 28, 2020 8:43 pm
FL-280 wrote: Wed Jan 15, 2020 2:58 pm They are not giving up the scope clause, just limiting what TS pilots can do. The benefit, TS pilots wont be able to touch a mainline aircraft..... thats where the fuss is. The senior ac pilots that have waited a long time for that wb upgrade would let that pass in a heartbeat.
It would be a hybrid of what is going on in Europe, AC will take note of all that....

I truly believe... this is where this is going to go. Its socialized bidding at rouge too, trust me its a win win. No all out war, no 8 years in court. Both parties loose nothing. TS pilots stay vacation pilots with a slightly better wage, AC pilots remain mainline pilots and vacation pilots if they choose to.
Slightly better wage in this recession/depression , not very likely.
That comment was on Jan 15th...... 7 months later the whole deal is not very likely. Our world has changed in such a short period of time
---------- ADS -----------
 
User avatar
YYZSaabGuy
Rank 8
Rank 8
Posts: 815
Joined: Wed Aug 04, 2010 7:32 am
Location: On glideslope.

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by YYZSaabGuy »

Gilles Hudicourt wrote: Wed Jul 29, 2020 4:02 am
The Raven wrote: Tue Jul 28, 2020 3:47 am If Air Canada really wanted Transat, instead of paying $18/share, why not go in there today and buy shares at $5? Hmmm, I think I answered my own question.
You are assuming that those who own shares want to sell them. Even if you see that the shares are listed at $5, it does not mean there are any for sale........
It's not an unreasonable assumption: average daily volume over the past 3 months has been just over 208,000 shares/day.
---------- ADS -----------
 
rudder
Rank 10
Rank 10
Posts: 2317
Joined: Wed Mar 08, 2006 12:10 pm

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by rudder »

FL320 wrote: Mon Jul 27, 2020 4:39 pm
rudder wrote: Mon Jul 27, 2020 2:52 pm
FL320 wrote: Mon Jul 27, 2020 2:35 pm

And they will do the same next month, we’ve been advised weeks ago.
I believe that there are two(2) further additional 30 day extensions available?
Only one left now. After the end of September other extensions will require a mutual agreement (under conditions) until the final limit of december 27th.
Sounds like September 27 is the date to circle on the calendar.
---------- ADS -----------
 
iflyroads
Rank 5
Rank 5
Posts: 322
Joined: Tue Jun 12, 2012 6:50 am

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by iflyroads »

rudder wrote: Wed Jul 29, 2020 6:39 am
FL320 wrote: Mon Jul 27, 2020 4:39 pm
rudder wrote: Mon Jul 27, 2020 2:52 pm

I believe that there are two(2) further additional 30 day extensions available?
Only one left now. After the end of September other extensions will require a mutual agreement (under conditions) until the final limit of december 27th.
Sounds like September 27 is the date to circle on the calendar.

Seems like we have been talking to the same people....
---------- ADS -----------
 
User avatar
Daniel Cooper
Rank 4
Rank 4
Posts: 289
Joined: Thu Dec 20, 2018 6:38 am
Location: Unknown

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Daniel Cooper »

You're right, they're worse because more people believe they are objective journalists.

But back to Transat. Why did they say they're going to use as many one month extension as they need if they only have one left?
---------- ADS -----------
 
FL320
Rank 5
Rank 5
Posts: 383
Joined: Tue Sep 14, 2010 11:44 am

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by FL320 »

Daniel Cooper wrote: Sat Aug 01, 2020 2:23 pm You're right, they're worse because more people believe they are objective journalists.

But back to Transat. Why did they say they're going to use as many one month extension as they need if they only have one left?
Other extensions will then require a mutual agreement with AC, not just a notice.
---------- ADS -----------
 
Fanblade
Rank (9)
Rank (9)
Posts: 1145
Joined: Mon Mar 28, 2011 8:50 pm

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Fanblade »

rudder wrote: Wed Jul 29, 2020 6:39 am
FL320 wrote: Mon Jul 27, 2020 4:39 pm
rudder wrote: Mon Jul 27, 2020 2:52 pm

I believe that there are two(2) further additional 30 day extensions available?
Only one left now. After the end of September other extensions will require a mutual agreement (under conditions) until the final limit of december 27th.
Sounds like September 27 is the date to circle on the calendar.
Under the current cash burn, quarantine outlook and government refusal of aid, by December AC will be weighing its Q1/Q2 2021 CCAA options.

Pretty sure Transat is just going through their fiduciary obligations at the moment knowing full well the deal under its current conditions is extremely remote.

I can’t see the Trudeau government trying to saddle AC with the current Transat deal in exchange for aid. The appearance of public money transferring to Transat shareholders is way too big a political hot potato.

I think what should concern everyone is what strings would be attached to government aid. For example what if aid comes with a carbon reduction target that forces AC and Transat to shrink to meet the target?

The past shows us Trudeau hands out public money to industry with demands they meet his agenda. I doubt he will pass on this opportunity.
---------- ADS -----------
 
Thorjones
Rank 1
Rank 1
Posts: 38
Joined: Mon Mar 14, 2016 7:45 am

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Thorjones »

"Outside Date" means June 27, 2020, provided that if one or more of the Key Regulatory Approvals has not been obtained, either Party may, in its sole discretion:(a)extend such initial Outside Date by three (3) additional successive periods of one (1) month each; and(b)thereafter, further extend the Outside Date by three (3) additional successive periods of one (1) month each, provided that, at the time of each such additional extension, a suit, action, litigation or arbitration or other legal proceeding (including any civil, criminal, administrative or appellate proceeding) has commenced, been brought or is conducted or heard by or before any Governmental Entity in relation to a Key Regulatory Approval




would this mean the european probe being conducted right now would allow TRZ to use another 3 on month extentions after september 27th.

looks like they extended the outside date a few days ago to sept 27th. effectively using their last extension as per paragraph a above.
---------- ADS -----------
 
altiplano
Rank 11
Rank 11
Posts: 4361
Joined: Sat Jan 22, 2005 2:24 pm

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by altiplano »

According to your text only if:

a suit, action, litigation or arbitration or other legal proceeding (including any civil, criminal, administrative or appellate proceeding) has commenced, been brought or is conducted or heard by or before any Governmental Entity


Has that happened? Is anyone bringing a legal action against the approval?
---------- ADS -----------
 
User avatar
YYZSaabGuy
Rank 8
Rank 8
Posts: 815
Joined: Wed Aug 04, 2010 7:32 am
Location: On glideslope.

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by YYZSaabGuy »

altiplano wrote: Thu Aug 27, 2020 1:19 pm According to your text only if:

a suit, action, litigation or arbitration or other legal proceeding (including any civil, criminal, administrative or appellate proceeding) has commenced, been brought or is conducted or heard by or before any Governmental Entity


Has that happened? Is anyone bringing a legal action against the approval?
I think the argument would be that the European Commission's investigation would effectively be an administrative proceeding, and would on that basis justify a further extension of the Outside Date by either of the parties.
---------- ADS -----------
 
altiplano
Rank 11
Rank 11
Posts: 4361
Joined: Sat Jan 22, 2005 2:24 pm

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by altiplano »

It's the regulatory approval itself though, it's not an action in relation to the regulatory approval being brought before a government or judicial entity. ie. a party seeking to block the action.

Something for lawyers to argue though.
---------- ADS -----------
 
Cappo1
Rank 1
Rank 1
Posts: 31
Joined: Fri Jul 10, 2020 1:41 pm

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Cappo1 »

FL-280 wrote: Wed Jul 29, 2020 5:35 am
tsgas wrote: Tue Jul 28, 2020 8:43 pm
FL-280 wrote: Wed Jan 15, 2020 2:58 pm They are not giving up the scope clause, just limiting what TS pilots can do. The benefit, TS pilots wont be able to touch a mainline aircraft..... thats where the fuss is. The senior ac pilots that have waited a long time for that wb upgrade would let that pass in a heartbeat.
It would be a hybrid of what is going on in Europe, AC will take note of all that....

I truly believe... this is where this is going to go. Its socialized bidding at rouge too, trust me its a win win. No all out war, no 8 years in court. Both parties loose nothing. TS pilots stay vacation pilots with a slightly better wage, AC pilots remain mainline pilots and vacation pilots if they choose to.
Slightly better wage in this recession/depression , not very likely.
That comment was on Jan 15th...... 7 months later the whole deal is not very likely. Our world has changed in such a short period of time
The deal will be hull only . We are already overstaffed and we are prepared for the big confrontation because every Air Canada employee will be brought back to work before any residual buyout pilots get on. Not happy news but our pilots must come first.
---------- ADS -----------
 
Thorjones
Rank 1
Rank 1
Posts: 38
Joined: Mon Mar 14, 2016 7:45 am

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Thorjones »

altiplano wrote: Thu Aug 27, 2020 1:19 pm According to your text only if:

a suit, action, litigation or arbitration or other legal proceeding (including any civil, criminal, administrative or appellate proceeding) has commenced, been brought or is conducted or heard by or before any Governmental Entity


Has that happened? Is anyone bringing a legal action against the approval?


well no not exactly, my curiosity lays with the terms "action' and "leading proceeding" conducted by any government entity
---------- ADS -----------
 
Thorjones
Rank 1
Rank 1
Posts: 38
Joined: Mon Mar 14, 2016 7:45 am

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Thorjones »

Cappo1 wrote: Thu Aug 27, 2020 6:26 pm
FL-280 wrote: Wed Jul 29, 2020 5:35 am
tsgas wrote: Tue Jul 28, 2020 8:43 pm

Slightly better wage in this recession/depression , not very likely.
That comment was on Jan 15th...... 7 months later the whole deal is not very likely. Our world has changed in such a short period of time
The deal will be hull only . We are already overstaffed and we are prepared for the big confrontation because every Air Canada employee will be brought back to work before any residual buyout pilots get on. Not happy news but our pilots must come first.


Can AC even handle this sale now at the original 720 mill purchase price or will this send them to bankruptcy.

I honestly think the deal may be dead in a months time, hence i was wondering about the extra extensions in the agreement.
---------- ADS -----------
 
iflyroads
Rank 5
Rank 5
Posts: 322
Joined: Tue Jun 12, 2012 6:50 am

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by iflyroads »

Cappo1 wrote: Thu Aug 27, 2020 6:26 pm
The deal will be hull only . We are already overstaffed and we are prepared for the big confrontation because every Air Canada employee will be brought back to work before any residual buyout pilots get on. Not happy news but our pilots must come first.

I don't think that is how it works, its going to be all or nothing under the current agreement. Any change to the current agreement requires a shareholder vote again afaik

We are less than 30 days away from the last extension that TRZ used. Thorjones bought up a good point, it would just depend on what each sides lawyer has to say.

I remember the EU halted the probe for a bit earlier this summer, pending some missing information/documents. Has it resumed the probe?
---------- ADS -----------
 
Sharklasers
Rank 4
Rank 4
Posts: 276
Joined: Mon May 29, 2017 5:24 pm

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Sharklasers »

iflyroads wrote: Fri Aug 28, 2020 9:19 am
I remember the EU halted the probe for a bit earlier this summer, pending some missing information/documents. Has it resumed the probe?
The probe has not resumed according to the EU commission competition website and Calin on the Q2 conference call.

https://ec.europa.eu/competition/elojad ... e=2_M_9489

When the probe resumes they will publish it on the case page
Example:

https://ec.europa.eu/competition/elojad ... e=2_M_9343
---------- ADS -----------
 
iflyroads
Rank 5
Rank 5
Posts: 322
Joined: Tue Jun 12, 2012 6:50 am

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by iflyroads »

Sharklasers wrote: Fri Aug 28, 2020 9:46 am
iflyroads wrote: Fri Aug 28, 2020 9:19 am
I remember the EU halted the probe for a bit earlier this summer, pending some missing information/documents. Has it resumed the probe?
The probe has not resumed according to the EU commission competition website and Calin on the Q2 conference call.

https://ec.europa.eu/competition/elojad ... e=2_M_9489

When the probe resumes they will publish it on the case page
Example:

https://ec.europa.eu/competition/elojad ... e=2_M_9343

Was wondering about this for a while now. Thanks!
---------- ADS -----------
 
User avatar
brooks
Rank 4
Rank 4
Posts: 292
Joined: Fri Jan 22, 2010 7:33 pm

Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by brooks »

I posted this in the General Airlines forum but I thought this would give some guys food for thought on the future of the AC-Transat deal.

Morning Star:
"Many investors are betting on a rebound for Air Canada stock. That would lead to 200% upside or more. The more likely scenario, however, is that the company goes bankrupt. Even if Air Canada can continue to raise capital over the next 12 months, the dilution will wipe out any upside for current investors."

Doesn't look good in the short/long term for AC. It could take more than 3 years to pay all this debt back. Too many wide-bodies and too much exposure to international markets. I don't want to see another bailout but they are still burning through way too much cash let alone a deal to buy Transat.
---------- ADS -----------
 
Post Reply

Return to “Air Transat”