RE:RE:AC sp positiveKingAce wrote: Wouldn’t it be cheaper for them to just each buy 17% of the company and overthrow the board
The reason is that they don't want to buy Aimia. Aimia itself is a holding company, that owns the canadian corporation that runs Aeroplan, and also owns stakes in the PLM, AirMiles MiddleEast, Cardalytics, and a few more odds an ends. AC just wants Aeroplan, and doesn't want to pay for all of the other assets, which would be required if it was just going to buy the shares if Aimia. So it has offered to by Aeroplan only. It would cost them about $553 million to simply buy all the common shares at $3.64, but only $250 million to buy Aeroplan (and of course, assume the points liabilities).
I would also assume that the banks in the consortium are getting a great deal from AC: they are probably putting up not very much at all.