The Worse But Better Award

Management usually pushes for the best price when they put their companies up for sale. Not Transat A.T. Inc., however. The airline’s board of directors in June approved Air Canada’s $13-per-share takeover offer valued at $520 million even though Group Mach Inc., a Quebec real estate developer, was offering $14 a share. Rebuffed, Mach in early August tried to buy a 19.5% stake (again, at $14 a share) in Transat so that it could vote against Air Canada’s deal along with Letko Brosseau and Associates Inc., which owned a 19.3% stake. Oddly enough, Transat’s strategy of refusing the higher price worked in its favour as Air Canada on Aug. 11 upped its takeover price to $18 a share, or $720 million. Later that month, 94.77% of shareholders voted in favour of the deal.