Canadian Tour Operator Transat Ends Takeover Talks With Quebec Businessman Karl Péladeau
Struggling Canadian tour operator Transat AT has said that it has ended discussions with Quebec businessman Pierre Karl Péladeau about a possible takeover.
Transat engaged with Péladeau after the country's largest airline, Air Canada, scrapped its merger plans due to stiff concerns raised by European regulators.
Péladeau offered C$5.00 per share in cash for Transat earlier this year, but the company's stock has surged nearly 60% to C$7.21 since it secured C$700 million ($565 million) in government funding in April.
"Considering the current share price, the price offered no longer provides a reasonable basis to...allow the transaction to proceed," Transat said.
Suspended Flights, Required Financing And Operations Resumption Date
Transat has suspended flights due to pandemic restrictions that have battered travel demand and has said that it needs at least C$500 million in financing this year.
The company said that it is planning to restart its operations and flights on July 30.