The action of Transat fall, Air Canada climbs

L’action de Transat chute, celle d’Air Canada grimpe

The uncertainty that hangs over the sale of Air Transat Air Canada is felt on the stock markets, where the value of Transat continues to melt.

Since Monday, the shares of Transat on the Toronto stock exchange fell 5.7%, although the company is now worth$ 242 Million. This is well below the 720 M$ promised by Air Canada for its acquisition.

The scenario is just the opposite for the national carrier. He has seen his title climb of 14.9%, while its capitalization amounted to$4.8 billion.

This increase can be explained among other things by the fact that investors believe that the transaction has little chance of that happening.

In addition, the liquidity of Air Canada amounted to approximately 9.7 G$ – would allow him to better cope with the health crisis. At the present time, the carrier loses$ 20 Million per day.

A decision of the minister of Transport Marc Garneau on the transaction between the two companies is still awaited. However, it is unknown when it could be done.

“The law does not impose a time limit for the minister to make his recommendation or to the governor in council to make a final decision,” said Livia Belcea, press attaché to the minister Garneau.

An analysis of the report the national interest, filed Tuesday, is in progress.

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