Canadian real estate developer Group Mach is making a last minute attempt to scupper Air Canada’s takeover of Transat A.T.
It has offered Transat A.T. shareholders $14 per share to secure a 19.5% stake which would be enough to block the Air Canada bid.
That would cost about $97 million.
Air Canada’s $13 per share offer currently on the table undervalues the company, says Group Mach CEO Vincent Chiara.
"I think Air Canada’s offer is unhealthy. I think that Transat’s board has mismanaged the process and that it is a bad transaction," he told the Canadian Press.
Other major shareholders Letko, Brosseau and Associates and PenderFund Capital Management have said they will vote against the Air Canada bid if it remains at $13 per share.
"I have spoken with major shareholders and we have support," Chiara said.
Group Mach had previously offered $14 per share but says the offer was ignored by the Transat board.
Transat has asked shareholders to stand firm while the company assesses the offer and makes a recommendation, which seems to be a delaying tactic.
Transat expressed doubts about Group Mach’s ability to fund a takeover bid, which irked Chiara.
"We do not intend to leave that unanswered. People at Transat made comments knowing they were inaccurate," Chiara added.
Shareholders are due to vote of the Air Canada bid on August 23.
