Description: Air Canada slashed the purchase price for tour operator Transat AT Inc. to almost a quarter of its earlier offer, citing the impact of the COVID-19 outbreak on the air transport industry.
Date: Oct 10, 2020
Questions for discussion:
- Explain the change in valuation for Transat.
- How does the reduction compare to the drop in Air Canada share prices over the same time period?
- What does all of this say about how to evaluate the worth of any business?