Pension funds looking at Air Canada

April 5, 2004 at 10:07 PM
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TORONTO, April 5 (UPI) -- Some of Canada's largest pension funds may come to the rescue of Air Canada if Hong Kong businessman Victor Li pulls out as a likely investor.

Li said last Friday he may abandon his deal because Air Canada has not met anticipated financial forecasts and because its unions have rejected key changes in their pension plans, the Toronto Globe and Mail reported Monday.

But sources told the newspaper that if that deal can't be saved, other investors may be prepared to fill the gap, including the airline's creditors, Cerberus Capital Management LP, and some of the country's largest pension funds.

There have been preliminary talks between the Caisse de dépôt et placement du Québec, the Ontario Municipal Employees Retirement Board and the Ontario Teachers Pension Plan Board about putting in a joint bid for the airline if Li pulls out.

Li's $650 million deal for one-third of the airline will expire April 30. He has said he has no plans to extend that deadline.

Topics: Victor Li
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