RE:This term should be illegalTransat needed access to loans......under the original terms of the deal, Transat was forbidden from taking on loans or new debt without Air Canada's approval.
In short, AC had Transat bent over the barrel!!!! So they permitted to let Transat take on new debt / loans, in exchange for a lesser sell price. Those were the terms of the deal.
The fact that AC is still in the game tells me that AC sees a big advantage for owning Transat in the future. AC looks 5, 10 and 15 years down the road....AC is more like China with their long term plans.....AC's president won't be voted out of office at the next election, and he won't have to share power with the opposition, and he can (and does) think further than the next five years.
I think there will be a competing offer before the vote on this one. I wonder how Transat special committee is going to try and tell people that $6/share is less than $5/share. Somehow, they got away with it once already, which I found unbelieveable!!!!!