Bid for Canadian Airlines

Canadian Airlines stock owners have until Tuesday to accept Air Canada’s $63-million offer, ending a bitter airline war among former rivals. Canadian Airlines’ board recommended that its shareholders accept a buyout offer during the weekend. If approved, it will be a defeat for the Oneworld alliance led by AMR Corp.’s American Airlines. Oneworld had been trying to fend off the takeover by Air Canada, a member of the Star Alliance headed by UAL Corp.’s United Airlines and Germany’s Lufthansa. The offer calls for Air Canada to take over Canadian and run it as a separate airline. Even if a majority of Canadian Airlines shareholders accept the Air Canada offer by Tuesday’s deadline, Air Canada still must get American Airlines to surrender its 25% stake in Canadian Airlines and win federal regulatory approval for the deal. It has said it expects to cut about 2,500 jobs in a merged company.