RE:RE:RE:RE:RE:PRIVATE BUYER SEES A BARGAIN........... Also interesting to zoom in the situation that prevailed on August 23th 2019, when Transat shareholders approved the 18$/share offer by AC,
At that time, the AC share price was around 42$, for a 18/42=43% ratio.
Taking into account that :
1. the deal never went through because of lack of rapid approval by the Monopoly bureau followed by the COVID crisis. It might very well never been approved anyway.
2. that the industry is completely deflated,
One could comtemplate the current AC offer as excellent since :
1. Chances of approval by the monopoly bureau are much higher this time around, thanks to the COVID.
2. Once the monopoly advantage will be acting on the fully recovered market, the Transat shareholders who will have opted to follow with 28,62% of AC share will be very well off. Probably close or better than the 18$ deal would have - had it been approved and COVID crisis had not existed.
I believe that for Morneau-Sheppell to feel comfortable with the current AC offer, they must be considering it through such an angle.
Plus, being heavily on each side of the deal (AC and Transat), they see that the synergy leverage that comes with "quasi-monopoly" will be very strong when the "after war mood" kicks in - like in the 50's... (when Elvis-Presley started to make everyone feel young again).
Lets wait and see... (while practicing your dancing moves in the basement). Cheers!