** Shares of Canadian tour operator Transat fall ~7% to C$13.20 after accepting Air Canada’s takeover offer following the end of an exclusivity period on Wednesday
** TRZ still trading above Air Canada’s offer of C$13 per share, which was below C$14/share offer from real estate developer Group Mach
** AC’s offer values TRZ at C$520 mln ($396.7 mln)
** The agreement between AC and TRZ that still requires shareholder approval, has previously been opposed by TRZ’s largest shareholder, according to a report by the Globe and Mail last month
** The deal includes a breakup fee of C$15 million payable by TRZ in case of termination in certain circumstances, including acceptance of a fully financed proposal of C$14/shr or more that is not matched by AC
** Up to Wednesday, TRZ stock had surged more than 34% since talks with AC began in May
** Air Canada’s shares up 2.5% at C$40.34 on Thursday morning ($1 = C$1.31) (Reporting by Debroop Roy in Bengaluru)
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