Air Canada 2008 Annual Report Download - page 81

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2008 Management’s Discussion and Analysis
81
Future Sales of Shares by or for ACE
ACE generally has the right at any time to spin-off the Air Canada shares that it owns or to sell a controlling interest in Air
Canada to a third party, in either case without the approval of the public shareholders of Air Canada and without providing for
a purchase of such shareholders’ shares of Air Canada. Sales of substantial amounts of Air Canada’s shares by ACE (including
through a distribution of Air Canada’s shares to ACE shareholders), or the possibility of those sales by ACE, could adversely
affect the market price of the shares and impede Air Canada’s ability to raise capital through the issuance of equity securities.
ACE has no contractual obligation to retain any of the Air Canada shares. The registration rights agreement that Air Canada
entered into with ACE concurrently with the Air Canada Initial Public Offering (“IPO”) granted ACE the right to require Air
Canada to file a prospectus and otherwise assist with a public offering of shares that ACE holds in specified circumstances. In
addition, Air Canada could issue and sell shares. Any sale by ACE or Air Canada of shares in the public market, or the perception
that sales could occur could adversely affect the prevailing market prices of the shares.