Air Transport World

Court blocks Onex bid.(Brief Article)(Statistical Data Included)

Onex Corp. will have to decide whether to proceed through uncharted legislative waters in its pursuit of Air Canada now that a Canadian court has ruled its original offer illegal. On Nov. 5, Onex withdrew its bid to acquire a controlling stake in Air Canada and merge it with Canadian Airlines Corp. after the Quebec Superior Court ruled that the offer violated the Air Canada Public Participation Act, which prohibits any individual or company from owning more than 10% of the airline. Simultaneously, Onex canceled its offer to acquire Canadian Airlines. Air Canada shareholders were set to vote on the Onex offer on Nov. 8.

Before Onex can proceed anew, it will have to find enough support inside the Canadian government to persuade Parliament to lift the 10% cap. …

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