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.
Get a FREE Digital Subscription!Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.
"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.
News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.