(Reuters) -Transat AT Inc’s largest shareholder Peter Letko said he would not sell his shares in the Canadian tour operator at the price offered by Quebec businessman Pierre Karl Péladeau, the Globe and Mail reported on Tuesday.
Letko, vice president at Letko Brosseau and Associates, said he supports Transat AT’s plan to seek $500 million in loans and to operate independently rather than sell at a reduced price, the report https://www.theglobeandmail.com/business/article-transats-largest-shareholder-rebuffs-pierre-karl-peladeaus-offer said.
Letko’s firm owns a 12.69% stake in Transat, according to Refinitiv data.
Transat said it would hold talks with Péladeau, who has offered $5 a share for the tour operator, the report said.
Canada’s largest airline Air Canada scrapped its proposed C$188.7 million ($150.04 million) acquisition of Transat last Friday, due to antitrust hurdles in Europe.
Péladeau, chief executive officer of Canadian media and telecom firm Québecor Inc, had said the offer he had made for Transat in December was still available.
Transat last week said its top priority was securing financing and that it would review all its options including Péladeau’s proposal.
Transat, Peter Letko and Québecor did not immediately respond to Reuters requests for comment.
($1 = 1.2577 Canadian dollars)
(Reporting by Manojna Maddipatla in Bengaluru; Editing by Shailesh Kuber)