Canadian real estate firm Group Mach is ditching its rival bid to take over Transat A.T.
The company offered a higher price than Air Canada for the airline and tour operator but said Transat management chose to ignore the bid.
Transat agreed to sell to Air Canada at $13 per share, whereas Group Mach had tabled a $14-per-share proposal.
Although that seems to put Group Mach out of the picture, the Air Canada bid is far from a done deal.
It has to contend with major Transat shareholders Letko, Brosseau and Associates and PenderFund Capital Management, which are opposed to the deal, and the proposed sale will certainly prompt regulatory scrutiny.
Air Canada and Transat will have a 60% market share of the transatlantic market from Canada, as well as a dominant presence in the Montreal market.
Transat shareholders will meet by August 26 to vote on the Air Canada deal, which is valued at $520 million.
