It is verging on scandalous that the details of the latest (and supposedly final) Cerberus Capital offer for Air Canada have not been made public. Yes, tiny details have leaked out, and yes, ordinarily such auctions are better handled in private, with only the final details made public once something has been agreed to.
But this case is different: there is the perception that Victor Li’s Trinity Time Investments, as sole effective bidder, is getting a sweetheart deal for non-economic reasons. After all, earlier reports made clear that Cerberus’s prior offer was more than $100-million more than Li’s last offer, yet Li was picked to win by the Air Canada board, largely because of Li’s Canadian passport. (Under Canadian law, foreigners are constrained to no more than a 25% ownership position in airlines.) Investors deserve to know what is really going on.