Quebec businessman Pierre Karl Peladeau no longer interested in buying Transat AT

An Air Transat A310 Airbus is shown in this undated photograph. (Jeff McIntosh/The Canadian Press)

MONTREAL — Transat A.T. says negotiations about a takeover offer from Pierre Karl Peladeau ended Thursday, while the Quebec businessman says that he was no longer interested in acquiring the tour operator.

According to an update issued by Transat on Friday, Peladeau sent it a non-binding proposal on April 7, under which his private investment company Gestion MTRHP would acquire all of the Transat shares for $5 in cash per share.

Even though the proposal called for a response within 48 hours, the two groups continued talks until Thursday, Transat said in a statement.

The offer was also the subject of an in-depth review by a special committee, made up of independent directors who were responsible for evaluating any proposal to acquire Transat shares.

However, Peladeau said Thursday that he had "no more interest" in the tour operator, specifying that he had not been able to agree on a price with Transat's largest shareholder, Letko, Brosseau & Associates.

Transat said it is aware of Peladeau's public statements, but added that it had not received any formal communication on this subject.

Talks between the two sides followed an aborted transaction with Air Canada. The country's largest airline pulled the plug on its $190-million deal last month over Europe's unwillingness to approve the transaction.

Transat reached an agreement with Ottawa to borrow up to $700 million to reimburse its customers whose flights were cancelled due to the COVID-19 pandemic, and help support its business.

-- this report by The Canadian Press was first published May 14, 2021.