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Gold/Mining/Energy : Air Canada is taking off? -- Ignore unavailable to you. Want to Upgrade?

To: upultra who wrote (894)	10/5/1999 11:46:00 AM
From: Alomex	Read Replies (1) \| Respond to of 1033

The next question is, would Onex make a counteroffer? By all means yes. Onex lowballed their initial offer so they could later on go higher. It backfired in the sense that AC shareholders took offense to it. Perhaps if they had open their bid at $10 this would already be a done deal. And if so what would be the maximum they would go? I think the max is not much higher than $10. However, they could restructure the deal to make it more clear to small shareholders the actual potential of the buyout offer (which is closer to $12 per share). Next, if the counter offer is successful and Onex drops there bid, what happens next? If AA does feed Canadian Airlines enough cash each year (enough to survive), how would this effect AC? I don't think AA is willing to put one more cent into CA. I think CA would be rescued by government re-regulation of the industry, perhaps forced code share within Canada. The effect on AC would be more years of mediocre profits and results....