The Ontario Superior Court of Justice has set September 22, 1999, as the hearing date for an application made to the Court by Onex Corporation (“Onex”). Onex is seeking an order requiring Air Canada to hold a shareholders` meeting by November 8, 1999, in connection with an unsolicited takeover bid on Air Canada, to be filed shortly.
Air Canada believes Onex is undermining the 90-day window established by the Government of Canada`s Section 47 order by requesting a meeting to be held by November 8. For a November 8, 1999, meeting, materials must be mailed to shareholders by approximately the end of September. Mailing materials by the end of September will effectively preclude or freeze out other alternatives that become available. Under Section 47, Air Canada has until November 11 to receive or make proposals to the Minister of Transport.
“Air Canada is determined to ensure that our shareholders have every opportunity and adequate time to consider any proposal to enhance shareholder value that may come forward during the 90-day window,” said Doug Port, Senior Vice President, Corporate Affairs and Government Relations.
Air Canada intends to vigorously contest the requisition.