On last week share offering..... one little thingThanks, Another interesting text , but with all the respect that I have for your works, I don't think that the scenario described below could have taken place with the regulation frame we have. The explanation must be sought elsewhere.
In my November 15 post, Deal of the Century, I suggested that Air Canada may have been one of the purchasers of Air Canada shares on November 9th, the same day Q3 earnings were released. That day, over 27 million shares were traded. We’ve since learned that Fidelity was a major buyer – over 12 million shares – and shorts were not covering. If Air Canada did purchase shares that day, say 9 or 10 million, then part of this $815 million would be intended for this purchase, approximately $180 to $200 million. As long as Air Canada doesn’t cancel these shares, no requirement exists to report the purchase. These shares will sit in the Company’s Treasury until distributed to Air Transat shareholders who opted for the conversion.
1.- Rules that must be followed by public companies: - All share transactions of a company has to be discolsed if they are bought by insiders or the company itself, there's no minimum.
- More, a company have to ask exchanges for buyback shares and they will be approved only with a clear and limited program (NCIB or tender offer).
- Usually, the conditions for a NCIB included a limitations of daily numbers of shares that could be repurchased.
The goal of these rules is to avert a manipulation by a company of its own shares.
.2.- .....Air Canada self-imposes regular blackouts during the period commencing fifteen days prior to the end of each fiscal quarter to and including two trading days after the public announcement of Air Canada's quarterly or annual financial results..... From Air Canada may, 29 2019 news release.
3.- The Air Canada's NCIB has not been renewed in 2020.
4.- The company disclose in march that it has stopped its buybacks and disclose this again with the nov 9 Q3 results. (the same day of the 9M share purchase).
5.- The rapid disclosure requirements (5 days) for the company and the insiders is for the transactions not only for the cancellations. A company can't play (buying, keeping, selling) with its own shares without these disclosures.