AC and TRZ Agree to Terminate Arrangement

Discuss topics related to Air Transat.

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

Post Reply
derateNO
Rank 4
Rank 4
Posts: 288
Joined: Mon Feb 10, 2020 10:15 pm

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

Post by derateNO »

AT could fail before any of this even has the chance to go through. We're still looking at 2 more months before the gvn't gives it's result, and I'm sure it's the last thing on their mind right now.

Now... I could see the gvn't doing something like they did with Canadian and AC, force AC take on AT like they did Canadian and in exchange for a big bail out or something and promises that they can keep all their slots. This would go over well with QC for the next election and people keeping their jobs.
---------- ADS -----------
 
Victory
Rank 6
Rank 6
Posts: 464
Joined: Tue Sep 19, 2017 8:32 am

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

Post by Victory »

The competition bureau report is actually due out in a week. March 23rd. AC and AT have not been allowed to communicate with each other about this deal until that report is released. Even the AT CEO has said he expects this report to be negative. All of this was reported by the Financial Post but we all know how unreliable journalism is. I expect though that if the above is true the negative report will give AC an excuse to either renegotiate or walk away from the deal entirely.
---------- ADS -----------
 
FL320
Rank 6
Rank 6
Posts: 459
Joined: Tue Sep 14, 2010 11:44 am

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

Post by FL320 »

derateNO wrote: Mon Mar 16, 2020 6:42 pm AT could fail before any of this even has the chance to go through. We're still looking at 2 more months before the gvn't gives it's result, and I'm sure it's the last thing on their mind right now.

Now... I could see the gvn't doing something like they did with Canadian and AC, force AC take on AT like they did Canadian and in exchange for a big bail out or something and promises that they can keep all their slots. This would go over well with QC for the next election and people keeping their jobs.
I strongly suggest you to buy TRZ shares asap...
---------- ADS -----------
 
tsgas
Rank 7
Rank 7
Posts: 598
Joined: Sun Feb 29, 2004 12:53 pm

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

Post by tsgas »

FL320 wrote: Mon Mar 16, 2020 7:44 pm
derateNO wrote: Mon Mar 16, 2020 6:42 pm AT could fail before any of this even has the chance to go through. We're still looking at 2 more months before the gvn't gives it's result, and I'm sure it's the last thing on their mind right now.

Now... I could see the gvn't doing something like they did with Canadian and AC, force AC take on AT like they did Canadian and in exchange for a big bail out or something and promises that they can keep all their slots. This would go over well with QC for the next election and people keeping their jobs.
I strongly suggest you to buy TRZ shares asap...
Be prepared for wage concessions.
---------- ADS -----------
 
derateNO
Rank 4
Rank 4
Posts: 288
Joined: Mon Feb 10, 2020 10:15 pm

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

Post by derateNO »

LOL.

If after all this shit of dealing with lowest paid positions in the industry AND CR tries taking more?

I'm fucking done.

I'll going back to hooking at Hastings and Main.
---------- ADS -----------
 
FL320
Rank 6
Rank 6
Posts: 459
Joined: Tue Sep 14, 2010 11:44 am

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

Post by FL320 »

tsgas wrote: Mon Mar 16, 2020 7:55 pm
FL320 wrote: Mon Mar 16, 2020 7:44 pm
derateNO wrote: Mon Mar 16, 2020 6:42 pm AT could fail before any of this even has the chance to go through. We're still looking at 2 more months before the gvn't gives it's result, and I'm sure it's the last thing on their mind right now.

Now... I could see the gvn't doing something like they did with Canadian and AC, force AC take on AT like they did Canadian and in exchange for a big bail out or something and promises that they can keep all their slots. This would go over well with QC for the next election and people keeping their jobs.
I strongly suggest you to buy TRZ shares asap...
Be prepared for wage concessions.
Yes but I will soon gain 10 years pre-retirement :wink:
---------- ADS -----------
 
dialdriver
Rank 5
Rank 5
Posts: 332
Joined: Sun Mar 20, 2016 10:09 am

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

Post by dialdriver »

derateNO wrote: Mon Mar 16, 2020 7:58 pm LOL.

If after all this shit of dealing with lowest paid positions in the industry AND CR tries taking more?

I'm fucking done.

I'll going back to hooking at Hastings and Main.
Was that you?
---------- ADS -----------
 
derateNO
Rank 4
Rank 4
Posts: 288
Joined: Mon Feb 10, 2020 10:15 pm

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

Post by derateNO »

Daddy?
---------- ADS -----------
 
dialdriver
Rank 5
Rank 5
Posts: 332
Joined: Sun Mar 20, 2016 10:09 am

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

Post by dialdriver »

derateNO wrote: Mon Mar 16, 2020 8:02 pmDaddy?
I really need to stay off of here...
---------- ADS -----------
 
TSAM
Rank 2
Rank 2
Posts: 98
Joined: Tue Sep 18, 2018 5:11 pm

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

Post by TSAM »

.
---------- ADS -----------
 
Last edited by TSAM on Wed Apr 08, 2020 3:50 pm, edited 1 time in total.
rudder
Rank 11
Rank 11
Posts: 3848
Joined: Wed Mar 08, 2006 12:10 pm

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

Post by rudder »

I cannot find a specific reference to an MAC clause (Material Adverse Condition) for AC in the information issued by AC in June 2019 related to the original purchase agreement.

However, it is clear that the consummation of the deal is subject to regulatory approval. If the CT finds excess market concentration and orders route divestiture or consolidated capacity limitations that may be a valid reason for AC to void the offer.
---------- ADS -----------
 
TFTMB heavy
Rank 7
Rank 7
Posts: 656
Joined: Mon Feb 16, 2004 9:58 am

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

Post by TFTMB heavy »

The Competition Bureau report will only contain facts, that report is then taken by Transport Canada who will produce a report with recommendations and hand it to the Minister of Transport who in turn will issue his recommendations on the transaction. In the end Garneau will have the last word regardless of what any of the reports contain.

Analysts are still favourable to the transaction and lawyers still say the the Adverse Material Effects have not been met. That makes me think we are still heading towards the deal closing.
---------- 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 »

Keep hoping there bud.... TRZ was under 6$ this morning
---------- ADS -----------
 
FL320
Rank 6
Rank 6
Posts: 459
Joined: Tue Sep 14, 2010 11:44 am

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

Post by FL320 »

FL-280 wrote: Tue Mar 17, 2020 9:14 am Keep hoping there bud.... TRZ was under 6$ this morning
It does not mean anything except that it's another incredible short term opportunity for investment! Thank you AC! (happy DerateNo?)
---------- ADS -----------
 
TFTMB heavy
Rank 7
Rank 7
Posts: 656
Joined: Mon Feb 16, 2004 9:58 am

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

Post by TFTMB heavy »

FL-280 wrote: Tue Mar 17, 2020 9:14 am Keep hoping there bud.... TRZ was under 6$ this morning
AC went down to $15.51, still doesn't meet the definition of adverse material effect from what I was told. Nothing we say on here will change anything but carry on with whatever makes you feel better.
---------- ADS -----------
 
ahramin
Rank Moderator
Rank Moderator
Posts: 6309
Joined: Tue Feb 17, 2004 5:21 pm
Location: Vancouver

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

Post by ahramin »

"Material Adverse Effect" means any change, event, occurrence, effect, state of facts and/or circumstance that, individually or in the aggregate with other such changes, events, occurrences, effects, states of facts or circumstances is or would reasonably be expected to be material and adverse to the business, operations, results of operations, assets, properties, financial condition, liabilities (contingent or otherwise) of the Corporation and its Subsidiaries, taken as a whole, except any such change, event, occurrence, effect, state of facts or circumstance resulting from or arising in connection with:

(a) any change, event, occurrence, effect, state of facts or circumstance affecting
generally the airline industry
or the segments of the travel, hotel and tourism
industries in which the Corporation and its Subsidiaries operate;

but, in the case of clauses (a) through to and including (e) above, only to the extent that any
such change, event, occurrence, effect, state of facts or circumstances does not have a
materially disproportionate effect
on the Corporation and its Subsidiaries, taken as a whole,
relative to other entities operating in the airline industry or the segments of the travel, hotel
and tourism industries in which the Corporation and its Subsidiaries operate; and references
in certain sections of this Agreement to dollar amounts are not intended to be, and shall not
be deemed to be, illustrative or interpretative for purposes of determining whether a Material
Adverse Effect has occurred.
A Material Adverse Effect caused by an industry downturn has to hit Transat disproportionately in order to trigger the Material Adverse Effect clause in the Arrangement Agreement from June 27, 2019. If AC wants out of the deal it will have to be in some other way. Curiously, if you go back 3 months to before coronavirus was in the news, AC and TRZ have fallen almost exactly the same amount (63%). US airlines have been doing massive share buybacks over the last 10 years, leaving them with little cash to weather a downturn. Last year US Airline CEOs were explaining to their shareholders that this is a great move since it's not possible for big airlines to lose money anymore. In the meantime, AC has piled up over 7 billion in cash and Transat over half a billion.

In any case, TRZ shares are a big gamble right now, with a huge potential win or loss. I certainly wouldn't buy shares without having read the Agreement and watching the news very closely. You'll probably still be blindsided by the insiders but at least you did what you could.
---------- ADS -----------
 
TFTMB heavy
Rank 7
Rank 7
Posts: 656
Joined: Mon Feb 16, 2004 9:58 am

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

Post by TFTMB heavy »

ahramin wrote: Tue Mar 17, 2020 11:22 am
"Material Adverse Effect" means any change, event, occurrence, effect, state of facts and/or circumstance that, individually or in the aggregate with other such changes, events, occurrences, effects, states of facts or circumstances is or would reasonably be expected to be material and adverse to the business, operations, results of operations, assets, properties, financial condition, liabilities (contingent or otherwise) of the Corporation and its Subsidiaries, taken as a whole, except any such change, event, occurrence, effect, state of facts or circumstance resulting from or arising in connection with:

(a) any change, event, occurrence, effect, state of facts or circumstance affecting
generally the airline industry
or the segments of the travel, hotel and tourism
industries in which the Corporation and its Subsidiaries operate;

but, in the case of clauses (a) through to and including (e) above, only to the extent that any
such change, event, occurrence, effect, state of facts or circumstances does not have a
materially disproportionate effect
on the Corporation and its Subsidiaries, taken as a whole,
relative to other entities operating in the airline industry or the segments of the travel, hotel
and tourism industries in which the Corporation and its Subsidiaries operate; and references
in certain sections of this Agreement to dollar amounts are not intended to be, and shall not
be deemed to be, illustrative or interpretative for purposes of determining whether a Material
Adverse Effect has occurred.
A Material Adverse Effect caused by an industry downturn has to hit Transat disproportionately in order to trigger the Material Adverse Effect clause in the Arrangement Agreement from June 27, 2019. If AC wants out of the deal it will have to be in some other way. Curiously, if you go back 3 months to before coronavirus was in the news, AC and TRZ have fallen almost exactly the same amount (63%). US airlines have been doing massive share buybacks over the last 10 years, leaving them with little cash to weather a downturn. Last year US Airline CEOs were explaining to their shareholders that this is a great move since it's not possible for big airlines to lose money anymore. In the meantime, AC has piled up over 7 billion in cash and Transat over half a billion.

In any case, TRZ shares are a big gamble right now, with a huge potential win or loss. I certainly wouldn't buy shares without having read the Agreement and watching the news very closely. You'll probably still be blindsided by the insiders but at least you did what you could.
Statements full of facts and devoid of irrational emotional ramblings are not well received around here. Brace for some irrational emotional rambling.
---------- 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 »

Man, Here is the deal. At the end of the day AC will do what AC WANTS TO DO.... you guys are like “we don’t want this as much as you guys don’t” Clearly not... you wouldn’t be stating fine prints of the if not.
I believe you guys are holding on to the last hope of sustainability in your careers as hard as you can. When the last hope relies on another company buying yours, it says a lot about your career choices.

Best of luck
---------- ADS -----------
 
Hangry
Rank 5
Rank 5
Posts: 375
Joined: Fri Jun 08, 2018 2:05 am

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

Post by Hangry »

I for one enjoy a back and forth troll fest from time to time.

This isn’t that time. Lots of pilots are going to feel some real hurt. Of course they are afraid. I’m afraid. We all should be.

Let’s hope for the best. If the deal goes through it’ll be a good thing that a bunch of pilots didn’t lose their jobs.

Good luck to all.
---------- ADS -----------
 
TFTMB heavy
Rank 7
Rank 7
Posts: 656
Joined: Mon Feb 16, 2004 9:58 am

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

Post by TFTMB heavy »

FL-280 wrote: Tue Mar 17, 2020 12:02 pm Man, Here is the deal. At the end of the day AC will do what AC WANTS TO DO.... you guys are like “we don’t want this as much as you guys don’t” Clearly not... you wouldn’t be stating fine prints of the if not.
I believe you guys are holding on to the last hope of sustainability in your careers as hard as you can. When the last hope relies on another company buying yours, it says a lot about your career choices.

Best of luck
You are lumping everyone into the same basket and that says a lot about you. You are right that AC will do what they want, I don't think anyone is disputing that. Will they have to pay the 40 million penalty is the whole point of the adverse material effect discussion. The quote about the press release was very misleading as it was in the standard warning at the end. Nothing wrong with setting the facts straight.

TS pilots are in the process of voting on a LOU that will prevent layoffs for the next two months if it is ratified. Our group has seen many layoffs over the years and the company has been very resilient thought the many crisis it has survived. We are hoping for the best for us and all other pilot groups affected.

BTW,I stand by every carrier choice I have ever made, good or bad. 23 years and counting and I enjoy it more than ever.
---------- ADS -----------
 
Post Reply

Return to “Air Transat”