Negotiations officially dead between Transat A.T., Peladeau

Transat A.T. announced Monday that discussions have officially ended with Quebec businessman Pierre Karl Péladeau about a possible acquisition of its shares.

Péladeau had stated last month that his company, Gestion MTRHP, was no longer interested in buying the tour operator.

According to Transat, this comes after the media mogul sent it a non-binding proposal on April 7, under which he proposed buying all Transat shares for $5 cash each.

Though the proposal demanded an answer within 48 hours, the offer was subjected to an in-depth review by a special committee hired to evaluate any proposal involving Transat shares.

Following this, Péladeau stated he had "no more interest" in the company because he was not able to come to an agreement on price with Letko, Brosseau & Associates, Transat's largest shareholder.

Talks between the two first sparked after Air Canada pulled the plug on its $190-million deal last April because of Europe's unwillingness to approve the transaction.

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

-- with files from The Canadian Press.