Péladeau had made a non-binding offer for Transat of
"Considering the current share price, the price offered no longer provides a reasonable basis to envision receiving the level of shareholder approval required in order to allow the transaction to proceed," Transat said in a news release.
It added that Péladeau's investment firm confirmed to the company that it was withdrawing from discussions.
Shares in the company closed at
The Péladeau offer has been rejected by Transat's largest shareholder, Letko Brosseau. In mid-May, Péladeau claimed to be no longer interested in this purchase, while Transat replied that it had not been formally notified of this lack of interest.
The company announced that the work of its special committee to assess strategic options will end under the circumstances.
Transat says it plans to focus its efforts on its strategic plan and on the restart of its operations and flights on
The plan includes considering ways to optimize its financial structure, which could include the issuance of shares or bond financing on more favourable terms than was made available by the federal government.
This report by
Companies in this story: (TSX:TRZ)
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