Transat officially in war against MACH
Transat’s position
Today, Transat has issued a press release and a letter to its shareholders. The tone used by Transat leaves no doubt as to the state of its relations with the MACH Group.
The statement speaks of Mach’s highly abusive, coercive, misleading and conditional ploy. Transat strongly recommends that its shareholders not react to MACH’s offer and accept Air Canada’s offer. Transat will also file a complaint against the MACH Group with the AMF to block the scheme. Finally, Transat is currently reviewing other legal measures to prevent the execution of MACH’s scheme.
The MACH group
The scheme of MACH is well put together and carries little risk for the latter. He is surprisingly well-up for a company that has no experience in mergers and acquisitions. This is the kind of stratagem that one would rather expect to see with an experienced company like ONEX.
Since submitting its first offer, the MACH group has been unable to obtain the slightest cooperation from Transat. The more the real estate group insists and the more Transat resists. There is certainly something that escapes us and that would explain the camped position of both parties.
The war
Transat’s position also leaves no doubt as to the fate of the August 23rd meeting: either the shareholders vote on Air Canada’s proposal, or it will take all legal means to block MACH. The outcome of the legal guerrilla that begins is uncertain and no one can guarantee the holding of the vote. By August 23, we will probably attend an injunction festival.
For its part, the MACH group seems determined to fight the battle to the end. We do not know how long this legal saga will last. The danger here is that one of the two companies comes out badly injured.
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