NEW SHAREHOLDER RIGHTS PLAN ADOPTED BY AIR CANADA

A new shareholder rights plan has been adopted by Air Canada’s board that will make a hostile takeover more challenging. The airline was very quick to point out that this was not adopted in response to any takeover threat. The plan is effective immediately but must be ratified by shareholders at Air Canada’s next annual meeting on May 5. It will expire after the annual meeting in 2014, unless terminated early.