A second bidder for one of Canada's major airlines has withdrawn its bid. On the mergers and acquisitions news front recently, Group Mach has withdrawn its offer for Transat A.T. since the company didn't acknowledge its offer despite it being higher than Air Canada's bid. Group Mach offered $14 a share, while Air Canada's offer stands at $13 per share, or $520 million.
Transat has chosen not to entertain the offer put forth by Group Mach despite the fact that agreement between Air Canada and Transat stipulates that Transat can entertain other offers of at least $14 per share plus a $15 million break fee for Air Canada. Transat shareholders vote on the Air Canada proposal currently on the table, which is on Aug. 26. Air Canada has the opportunity to match any potential competing bids for the airline.
The current Air Canada deal is not sitting pretty with many of Transat's major shareholders. In any case, the potential acquisition also has to pass legal and regulatory rules before it can move forward. Transat has kept quiet on whether it received any other offers besides the ones on the table.
There are many rules that encompass mergers and acquisitions in Canada. The law that governs these types of business deals are complex and having a lawyer on one's side can help to ensure deals abide by the laws that drive them. Whether mergers and acquisitions are between major corporations and involves millions of dollars or whether they're more financially modest, a lawyer's know-how may help to ensure a smooth transition.