Air Canada said late Tuesday it has extended its offer to purchase all
outstanding shares of Canadian Airlines Inc. to Dec. 23. The original
deadline was Tuesday.
Montreal-based Air Canada said it extended the deadline to provide
shareholders with additional time, and for additional time to negotiate
with AMR Corp., which owns a 25-percent stake in Canadian Air.
Air Canada’s bid to buy Canadian’s shares, estimated at C$92 million, would
allow the airline to dominate the Canadian market. Air Canada plans to buy the
money-losing airline, trim back its staff, fleet and routes, and operate it as a
subsidiary. Canadian would also be removed from the oneworld alliance, which includes
American and British Airways.
AMR, which joined with Onex Corp. in an unsuccessful hostile takeover bid to
buy Air Canada, has been demanding C$1 billion in compensation if Canadian is pulled from
oneworld.
Canada Air said it also extended the deadline to "seek to obtain the
requisite regulatory consents as well as clarification respecting the terms of any new or
proposed legislation or policy that would be applicable" to guidelines said by
Canada’s Minister of Transport.
CANADA AIR EXTENDS OFFER FOR CANADIAN AIR STOCK PURCHASE
CANADA AIR EXTENDS OFFER FOR CANADIAN AIR STOCK PURCHASE
