Could AC Buy Transat? 16May19 Update: AC enters into agreement to buy Transat

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Aug 13, 2019, 8:20 pm

#271

robsaw

Join Date: Dec 2008

Location: Delta, BC

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Quote:

Originally Posted by Fiordland

I wonder if WestJet was distracted with going private and now that is in hand just started to notice what Air Transat was up to. I agree it may be to late, but it would have been a nice fit. Perhaps at this point all they can hope to do is make some noise and force Air Canada to spend more money on close the deal.

The Onex/Westjet deal may have shareholder approval but the transaction is not yet complete and may not be until 2020. Adding a Transat acquisition by Westjet to the mix seems unlikely - I could see Onex making a bid and folding into Westjet once both transactions were complete - but I see no evidence of either.

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Aug 14, 2019, 12:06 am

#272

YVR72

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Quote:

Originally Posted by YXUFlyboy

I feel badly for the consumers in YUL. In some markets this won't be noticeable, but WS has zero presence in Quebec, so look for a near monopoly for sun and Europe in Quebec to AC.

Instead of blaming the government, id hope the private sector sees an opportunity.

Aug 14, 2019, 12:11 am

#273

YVR72

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Quote:

Originally Posted by The Lev

I'm sure you are right with reqards to the telecom sector - that was a slight exaggeration on my part.

AC and Transat are the #1 and #2 players on the Canada - Transatlantic and Canada - "South" routes. Allowing this would be like allowing Save-On and Safeway to merge in the west with no store divestitures.

Poor analogy. Save-On is the Porter of grocery chains... a small local player. Sobeys and Loblaws are the big guys.

Aug 14, 2019, 12:13 am

#274

YVR72

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Quote:

Originally Posted by AC7E7

Transat is hardly comparable to one of the big three telecommunication companies in Canada. I would not even compare them to Freedom Mobile. Transat is a relatively small operation vs WS and AC.

The problem in Canada is not that the competition bureau is gutless, but the high cost of running an airline vs other jurisdictions. Airport rents, fuel taxes, etc are very high vs the US. This prevents new competitors from starting up in Canada. If this were not the case, investors would be pouring money into the sector. Also keep in mind Canada is only 37M people (or whatever it is today). There is a limited customer base, which is why AC is targeting US travellers.

The Canadian airline industry is very healthy today vs back in the 80s, 90s, and early 2000s. I would never want to return to those days. If that means prices are higher, but stabilized, so be it.

The last thing we need is a Spirit, Frontier or Allegiant cutting corners and degrading air travel even more... let alone the degrading of our airport facilities. Spare me from ANYTHING like flying in the United States.

Aug 14, 2019, 7:44 am

#275

WestAust

Join Date: Jun 2011

Location: Montreal

Posts: 221

It seems there is a third partner with the WS/AF rumour, Pierre-Karl Peladeau of Quebecor fame is the Quebec player linking all those people (personal investment not through Quebecor) in order to keep the HQ in Quebec

article in french: https://www.lapresse.ca/affaires/ent...et-westjet.php

Aug 14, 2019, 8:02 am

#276

24left

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Quote:

Originally Posted by WestAust

Thanks for this.

How did anyone not think PKP would find his way into this?
Also, very interesting movement of the chess pieces.

Otherwise, the numbers.....:

"Si Air Canada et Transat contrôlaient ensemble environ 60 % de la capacité des vols sur le marché transatlantique depuis le Canada, un regroupement de Transat avec WestJet et Air France-KLM leur donnerait une part de quelque 35 %. Vers les destinations soleil, Transat (22 %) et WestJet (22 %) passeraient loin devant Air Canada (24 %)."

Aug 14, 2019, 12:31 pm

#277

robsaw

Join Date: Dec 2008

Location: Delta, BC

Posts: 1,646

Quote:

Originally Posted by YVR72

Poor analogy. Save-On is the Porter of grocery chains... a small local player. Sobeys and Loblaws are the big guys.

Actually it is a great analogy - to the market concentration and lack of regional competitors that would result with AC-Transat merger, specifically YUL. Very similar competitive analysis with Sobeys > Safeway lack of a 3rd-player without ordered divesture that went to Save-On in Western Canada and particularly Vancouver Island. Save-On (or more accurately, Overwaitea Food Group) has 160 stores in the West; Safeway 183 stores.

Aug 19, 2019, 5:42 pm

#278

24left

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PKP is busy.

Aug 19 2019

Montreal Gazette

Péladeau hints at offer for Transat, urges holders to nix Air Canada deal

https://montrealgazette.com/business...ir-canada-deal

La Presse

Péladeau fait miroiter une offre pour Transat

https://www.lapresse.ca/affaires/ent...ur-transat.php

Aug 19, 2019, 6:26 pm

#279

AC7E7

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Quote:

Originally Posted by 24left

Is there something in the water in Quebec? Don’t approve the offer, and I’ll offer better later? Come on...

If all these “potential” investors believed there was value in Transat, why didn’t anyone bid before AC? This is typical Quebec. Either put your money where your mouth is, or move on.

The problem is there is not enough capital in Quebec. All these guys do is talk, but they can’t pull the trigger.
Peladeau should focus on his NHL team.... oh wait...

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Last edited by tcook052; Aug 19, 2019 at 8:42 pm Reason: politics

Aug 19, 2019, 7:53 pm

#280

jasdou

Join Date: Aug 2014

Location: YQB

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Quote:

Originally Posted by AC7E7

Is there something in the water in Quebec? Don’t approve the offer, and I’ll offer better later? Come on...

If all these “potential” investors believed there was value in Transat, why didn’t anyone bid before AC? This is typical Quebec. Either put your money where your mouth is, or move on.

The problem is there is not enough capital in Quebec. All these guys do is talk, but they can’t pull the trigger.

Peladeau should focus on his NHL team.... oh wait...

While I share your sentiment about PKP, is the gratuitous Québec bashing really necessary?

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Last edited by tcook052; Aug 19, 2019 at 8:43 pm Reason: edit quote

Aug 19, 2019, 8:14 pm

#281

AC7E7

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Quote:

Originally Posted by jasdou

While I share your sentiment about PKP, is the gratuitous Québec bashing really necessary?

I am from Quebec. I lived there for 30 years. Let’s not turn this into a thread about political correctness. The fact is Quebec runs a little different from other jurisdictions.

If PKP wants to buy Transat, let him place a bid. Frankly, I think he is full of it.

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Aug 19, 2019, 8:49 pm

#282

tcook052

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Quote:

Originally Posted by AC7E7

If PKP wants to buy Transat, let him place a bid. Frankly, I think he is full of it.

Agree. Péladeau, who owns about 1.6 per cent of the outstanding shares of Air Transat’s parent company, should've come forward with his offer ages ago if he and his backers were intent on wresting control of TS from AC.

As I understand it, Fri. is the DDay for the AC bid as it must secure support from at least two-thirds of TS shareholders.

Aug 20, 2019, 4:28 am

#283

tcook052

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G&M article saying Péladeau may consider offer for Transat if Air Canada deal doesn’t take off

https://www.theglobeandmail.com/busi...l-cant-take-2/

Aug 20, 2019, 8:27 am

#284

24left

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Transat continues to back Air Canada bid following comments by Peladeau

August 20, 2019 9:30 am - Canadian Press

QUOTES

Transat A.T. Inc. repeated its recommendation that shareholders support a takeover offer for the company by Air Canada after Pierre Karl Peladeau hinted he may make an offer.

The travel company says it has never received an offer from Peladeau or any of his business associates to acquire Transat.

https://globalnews.ca/news/5787681/t...s-by-peladeau/

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Aug 20, 2019, 9:15 am

#285

YVR72

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Quote:

Originally Posted by AC7E7

The fact is Quebec runs a little different from other jurisdictions.

And this should be celebrated.

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