The two companies say Air Canada — the country’s largest airline — would pay $13 per share for Transat, the Montreal-based owner of Air Transat and numerous vacation travel businesses. After three hours of trading Thursday, Transat shares rose about 15 per cent to $12.17 while Air Canada stock gained four per cent to $40.54, which is above the previous all-time high set Wednesday at $39.16. McGill University professor Karl Moore said a combination of the two companies would help grow Air Canada Vacations, which competes with Transat, WestJet and others in the leisure travel market. Moore said the level of competition that Air Canada faces from WestJet will increase with the financial resources of Onex. Analyst Walter Spracklin of RBC Dominion Securities writes in a note to clients that there are a number of factors that would justify a premium price for Transat stock.

Source: thestar May 16, 2019 12:31 UTC