Air Canada today welcomed Canadian Airlines Corporation`s Board of Directors` recommendation that shareholders tender their shares to the Offer to purchase all of the issued and outstanding Common Shares and Non-Voting Shares of Canadian Airlines Corporation for a price of $2.00 per share. The Board further recommended that shareholders tender their shares to the Offer prior to its expiry time, set for 5:00 p.m. EST on December 7,1999.
” The Board`s recommendation is a very encouraging development for employees and shareholders of Canadian Airlines and should generate increased confidence for customers with future travels plans on Canadian Airlines,” said Robert A. Milton, President and Chief Executive Officer of Air Canada. ” We are getting very close to achieving a true global franchise that will realize the untapped air transportation potential for Canada.”
The Offer is conditional on certain events, including that more than 50 percent of the outstanding Common Shares, on a fully diluted basis, are tendered. Air Canada continues to work on a negotiated solution to the existing position of AMR Corporation and to seek clarification on proposed legislative and regulatory changes by the federal government. Air Canada must be satisfied prior to finalizing the transaction that the terms of any new or proposed legislation or policy that would be applicable as a result of the policy framework announced by the Government of Canada on October 26,1999, would not materially adversely affect Air Canada or Canadian. This clarification is critical in view of the hundreds of millions of dollars that will be required to rejuvenate and re-equip Canadian Airlines and take it to sustainable profitability.