News

Aimia vows to fight Air Canada’s court move to halt upcoming merger

Aimia vows to fight Air Canada’s court move to halt upcoming merger
Business
TORONTO - Aimia Inc. says it plans to defend itself against a move by Air Canada in Quebec Superior Court to halt a merger that the smaller company sees as key to its corporate reinvention.

The former owner of Aeroplan — a rewards program that Aimia sold to Air Canada last year — says Air Canada has filed an application for an injunction against Aimia’s proposed merger of its money-losing loyalty points business with Kognitiv Corp.

The agreement, announced on April 29, would see Aimia’s Loyalty Solutions brand join forces with the Waterloo, Ont.-based tech company to form a new entity called Kognitiv, leaving Aimia with a 49 per cent stake in the spinoff.

Aimia says Air Canada’s court filings allege that the transaction will result in breaches of non-competition and confidentiality provisions that Aimia agreed to when it announced the $720-million Aeroplan sale in November 2018.

Aimia says it denies the allegations and calls Air Canada’s court application “without merit and an abuse of process.”

The Kognitiv deal, slated to close the week of June 8, forms part of Aimia’s plan to cast off its past as a rewards points company and reshape itself as an investment manager under an overhauled board following a tumultuous two years of shareholder unrest and litigation.
Read more on Toronto Star
News Topics :
Similar Articles :
Business
MONTREAL Aimia Inc. says it has closed a transaction with Kognitiv Corp. after the Quebec Superior Court dismissed an application from Air Canada to halt the merger. The airline...
Business
TORONTO Aimia Inc. says it plans to defend itself against a move by Air Canada in Quebec Superior Court to halt a merger that the smaller company...
Canada
Air Canada, two banks and Visa Canada are offering to buy Aeroplan from its parent company Aimia, in a deal valued at over $2 billion. Canadian Press Listen Air Canada,...
Canada
A Porter Airlines plane lands next to a taxiing plane at Toronto s Island Airport on Friday, November 13, 2015. Aimia and Porter regional airline form new Aeroplan partnership to...
Business
A group led by Air Canada agreed to buy Aimia Inc.’s Aeroplan for $450 million in cash, ending a takeover battle for one of Canada’s most popular loyalty programs. Air...