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, 1999. 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. We have under the Section 47 order until November 10 to receive or make proposals to the Minister of Transport,” said Doug Port, Senior Vice President, Corporate Affairs and Government Relations.
“Air Canada intends to bring order to this process and ensure that our shareholders have every opportunity and adequate time to consider any proposal to enhance shareholder value. At this time, Air Canada has still not received Onex`s proposal,” added Mr. Port.
At the meeting, Onex would seek to make certain amendments to Air Canada`s Articles to circumvent the existing 10% ownership threshold in Air Canada`s governing legislation designed to ensure broad domestic ownership of the Company. Onex also has announced its intention to replace Air Canada`s Board of Directors.
Air Canada intends to vigorously contest the requisition and the court application.