JUDGE SETS AIR CANADA HEARING
In response to an application filed last week by Canadian investment firm
Onex Corp., the Ontario Superior Court of Justice has set a hearing for Sept. 22 to
determine when Air Canada will hold a shareholder’s meeting to consider acquisition
proposals.
Onex wants the Ontario court to order Air Canada’s board to hold a
shareholder’s meeting Nov. 8. Onex, with support from American Airlines’ parent company
AMR Corp., has made an unsolicited bid to buy Air Canada, in hopes of merging the airline
with smaller rival Canadian Airlines.
Air Canada has approved a plan designed to stall the unwelcome Onex bid until
a shareholder meeting scheduled for Jan. 7.
Air Canada’s board said its shareholder rights plan, known as a
‘poison-pill,’ will give the company time to consider all proposals, including the bid
from Onex. Air Canada has said it sees little benefit to shareholders in Onex’s
below-market-value offer.
Under the Onex bid to merge Air Canada with Canadian Airlines, Air Canada
would become a member of the oneworld alliance, anchored by American Airlines and British
Airways.
Analysts believe Air Canada’s Star Alliance partners are considering a bid
for the carrier, and the airline’s employees also may be working on a buyout plan.