Péladeau hints at offer for Transat, urges holders to nix Air Canada deal

MONTREAL Quebec’s biggest press baron is throwing a wrench into Air Canada’s plans to acquire Transat AT Inc.

Québecor Inc. chief executive officer Pierre Karl Péladeau said Monday he will vote against the proposed acquisition of Transat by Air Canada, saying the deal is “against the public interest.”

He urged all investors to follow his lead, and said he would be ready to make them a better offer if they reject the Air Canada transaction.

Transat shareholders are scheduled to vote on Air Canada’s improved $18-a-share offer Friday in Montreal. At least two-thirds of holders must approve the proposal. Assuming all conditions are met, including regulatory approval, the deal is expected to close in early 2020.

Péladeau said on his Facebook page he has been holding talks with “strong and established partners of international renown” in the past few months over a possible bid for Transat.

Such an offer would include an “equitable” price and come with a “rigorous” business plan that bets on Transat’s strongest growth areas while seeking to create jobs in Quebec and expand the company’s Montreal head office, Péladeau said.

He didn’t specify what kind of per-share price he has in mind nor did he identify his potential partners.

Investors and regulatory authorities should reject the announced combination because it will lessen competition in the air-travel market, given that Air Canada and Air Transat are direct competitors on multiple routes, Péladeau said.