Ciro From Brazil, joined Aug 1999, 662 posts, RR: 7 Posted (14 years 1 month 2 weeks 6 days 18 hours ago) and read 1098 times:
According to the magazine "Air Transport World", Air Canada/United Airlines/Lufthansa will take over Canadian Airlines, reestructure the entire Canadian route network and leave the remaining bits and pieces of CP to create a much smaller national carrier, which will eventually code share with Delta. What a blow for American Airlines!
PS: The deal has to be approved by the Canadian government still.
The fastest way to become a millionaire in the airline business is to start as a billionaire.
Bicoastal From , joined Dec 1969, posts, RR: Reply 1, posted (14 years 1 month 2 weeks 6 days 16 hours ago) and read 955 times:
Yes, it's fun reading the daily attacks flying between American/Onex and Air Canada/Lufthansa/United. Not much coverage in the daily press outside of Canada but if you log on to the Toronto Globe and Mail, you'll read its daily coverage of the soap opera. The Montreal Gazette covers it well, too.
It would be ironic that American Airlines could get shut out of the market in Canada if the Air Canada counter offer prevails. I'm a Star Alliance frequent flyer so I admit I'm biased in favor of Air Canada which I fly frequently.
Dannyboy From United States of America, joined Aug 2005, 0 posts, RR: 0 Reply 4, posted (14 years 1 month 2 weeks 6 days 14 hours ago) and read 943 times:
Ciro, that was a counter-offer from AC. Nothing has been decided as of yet and won't be until Nov8. Just because AC has this counter don't expect their shareholders to automatically go there, it all boils down to which deal will make them the most $$$$$$ . As it stands now, AA has veto rights at CP, so do you really think they would approve the sale to AC under those terms with backing from UA?! Not likely.
AC183 From Canada, joined Jul 1999, 1532 posts, RR: 2 Reply 6, posted (14 years 1 month 2 weeks 6 days 7 hours ago) and read 924 times:
Well, here's my analysis on the subject:
First off, I hardly think this is anywhere near settled. Expect a sequence of more offers/counteroffers and legal challenges to come. It will be interesting to see this unfold.
Next of all, about AA's veto. AA may have considerable control, but they can't prevent CP shareholders from tendering their stock. Or for that matter they can't stop AC from buying CP stock on the market. In the event AC manages to gain control of CP (or more precisely the holding company, which AA does not own stock in), I expect there would be negotiations, legal manoevres, and some changes to AC's offer to appease AA. Specifically, AC might change the code-share it proposes for CP to be with AA rather than Delta. Also, AC could offer to buy some services from Sabre in exchange for AA co-operating. The bottom line is that in the event of the Onex bid winning (I think it is unlikely), AA would win big. In the event of AC winning, AA could be shut out of large parts of the Canadian market. In the end, AA continuing to code-share with CP would largely be a draw, or a slight loss for AA, but better than than nothing. Their ownership in CP may be to some extent a trump card, but if they can't play it, then they lose.
AC_A340 From Canada, joined Sep 1999, 2251 posts, RR: 1 Reply 7, posted (14 years 1 month 2 weeks 5 days 19 hours ago) and read 915 times:
Air Canada is off to court today to argue that the Onex bid is illeagal. It would be considered illeagal because it is over the 10% law by far. On another note, it is quite obvious that the Gov't favours the onex deal. It is considering raising the cap on the 10% law. Air Canada argues if this had been done sooner, this would've made the way for more counter-offers. I would way rather see the AC/UA/LH/CIBC deal win, which I think it will. And a spokesman for onex said after the AC deal was announced "I'd like to compare it to the spruce goose, it looks good on paper but it won't fly" Didn't the spruce goose fly? I like to beleive it did.
AC183 From Canada, joined Jul 1999, 1532 posts, RR: 2 Reply 8, posted (14 years 1 month 2 weeks 5 days 5 hours ago) and read 905 times:
Today Onex increased its bid to $13 for Air Canada shares. There have been some other changes to the conditions of their offer also. This goes to a shareholder vote in 10 days. Air Canada is rumoured to be considering increasing its buyout package. More events to unfold soon, including legal actions, reactions from AC on the changes to the Onex bid, and possibly government policy changes or clarifications. Stay tuned folks...
There's just one thing I don't understand about the Onex bid. If their previous bid was so good, why did they have to increase it by over 50%?
Oh, and for any fellow Canadians out there, did anyone notice the way Canadi>n Airlines has been acting during this. It seems pretty apparent they have no say in their own future. And did anyone else notice that despite saying only a few weeks ago that they would consider any new offers, Mr. Benson (president of CP) quickly announced that they had rejected AC's offer but admitted that they hadn't even formally recieved it then?
Dannyboy From United States of America, joined Aug 2005, 0 posts, RR: 0 Reply 10, posted (14 years 1 month 2 weeks 5 days 3 hours ago) and read 895 times:
It is sad, really sad. Whatever they're going to do, for everyone's sake including mine, I just want it over with. Which ever way it goes. But I do agree with you guys, it's not going to happen all that quickly. 2 years from the acceptance from whichever deal till things are formally intergrated is what I hear.
AC_A340 From Canada, joined Sep 1999, 2251 posts, RR: 1 Reply 11, posted (14 years 1 month 2 weeks 4 days 8 hours ago) and read 886 times:
Onex announced AA and AMR are selling their shares if the new airline goes through. That makes for a completely Canadian company almost, except for other smaller companies. I still would much rather see the AC/UA/LH deal go through. AC also has another tactic in court now, I'm not sure which law it breaks, but it will break one, Onex said they are not raising their initial offer. They obviously did. I guess they can't stand to loose. And AC put itself in a good place by signing againg with Star for 10 years. With a 325 million early leave fee. And also by signing a 10-year deal with Cara food services, instead of the Onex owned Sky Chefs. But I think I speak for all of us when I say, just vote already, the suspense is killing me.
May the best man/company win.
Incase you didn't know, AC is the best company in this endeavour.