(October 19 – 11:45 ET) –
Air Canada is take a big
infusion of cash from its Star
Alliance partners Lufthansa
AG and United Airlines
to launch its own bid for Canadian
Airlines. It wants to fend off
a hostile bid from Onex Corp.

Air Canada announced this
morning that itwill receive $730
million from its German and
American airline partners to
buyback as much as 35% of its own
shares, while also bidding $92
million in cash for Canadian.

United plans to kick in $440
million, while Lufthansa will
contribute $290 million and
United’s C$440 million, and CIBC
is ready to ante up another $200
million if necessary. The buyback
would be offered at $12 per share.

-IE Staff