CALGARY, Alberta (Reuters) - Surging jet fuel prices have
cut odds that Air Canada
"Given, in particular, fuel prices, the likelihood of something happening imminently with Air Canada vis a vis a sale is low," Milton told analysts on a conference call. "But we're going to continue to monitor the situation and keep all our options open."
In February, Milton said he had been fielding calls from private equity firms interested in launching a buyout of Canada's biggest airline or linking it up with a U.S. carrier.
However, little has been said publicly on the matter since. ACE owns 75 percent of Air Canada, which reported on Thursday that its fuel bill in the first quarter jumped by C$130 million ($129 million) from the year before as oil prices soared above $100 a barrel.
ACE launched a C$500 million tender on Friday for about 42 percent of its stock as the firm moves toward ending its holding company structure. That follows a C$1.5 billion buyback completed in January.
Milton said his intention is to wind up ACE in three to six months. Last year, the company expected to complete the windup around March 2008, but Air Canada's weak share prices has complicated matters.
Meanwhile, ACE expects to sell its remaining interests in
Jazz Air
Following a number of secondary offerings, ACE now owns 9.5 percent of Jazz and 9.9 percent of Aeroplan.
ACE's A-series shares were up C$1.55, or nearly 8 percent, at C$21.60 on the Toronto Stock Exchange.
(Reporting by Jeffrey Jones; editing by Rob Wilson)
© Reuters Limited. All Rights Reserved.
Reproduction or redistribution of Reuters content, including framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
