Quebec Court Declares Onex Bid Illegal

Air Canada is gratified by today`s ruling by the Quebec Superior Court that the Onex-AMR Offer is illegal under the 10 percent ownership provisions of the Air Canada Public Participation Act.

“This ruling is tremendously important for Air Canada,” said Air Canada`s President and Chief Executive Officer Robert Milton. “It affirms our strongly held position that the Onex-AMR Offer is illegal as we have believed all along.”
Justice André Wery delivered the ruling this afternoon in Montreal. The ruling states that the Onex-AMR Offer violates the Air Canada Public Participation Act.
“From the beginning of this process, we have maintained that our shareholders should not be asked to make crucial decisions about the future of the company in a legal vacuum,” added Mr. Milton. “With this ruling, our shareholders finally have the clarity we have been seeking on this issue. Clearly the Onex-AMR Offer cannot go forward.”

The court ruling does not affect Air Canada`s offer to buy back up 36.4 percent of its Common Shares and Class A Non-Voting Shares for $16 per share. “We structured our plan to work within the existing laws of Canada governing Air Canada and we`re proceeding with it,” continued Mr. Milton. “Our shareholders will receive up to $1.1 billion in immediate cash and will benefit from the strong growth potential of one of the world`s great airline franchises.