Deals
Virus Crisis Has Investors Doubt Air Canada’s Transat Deal
- Transat shares fall as much as 46% below purchase price
- Transat CEO confident deal will go through on agreed terms
The takeover of Air Transat is still pending regulatory approval.
Photographer: Brent Lewin/Bloomberg
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Tour operator Transat A.T. Inc. slumped to the lowest level since last May, opening up a large gap between the share price and a takeover offer from Air Canada.
Montreal-based Transat agreed in August to be acquired for C$18 a share in cash. The shares fell as low as C$9.77, about 46% below Air Canada’s bid, before paring part of the losses and trading at C$10.96 at 1:53 p.m. in Toronto.