Canada Stocks Close Lower; Mitel Networks to Buy Aastra; Air Canada Most Active
Canadian stocks closed lower on Monday, as momentum stalled after Friday's rally. Most sectors were lower, with Telecom leading the broader markets lower. Info Tech was the best performing sector in a down tape.
Mitel Networks ( MITL ) said it has agreed to acquire all of Aastra Technologies Limited (AAH.TO) for a total C$392 million. The price will be paid in cash, $6.52 per share, plus 3.6 Mitel shares for each of Aastra's shares. The combined company will have $1.1 billion in revenue for the trailing four quarters. They expect approximately $45 million of run rate synergies within two years, driven by supply chain optimization, facilities consolidation and economies of scale.
Air Canada was the most active share on the TSX, hitting a 52-week high, with no fresh specific stock news driving volume. The stock closed up 8.18% with 4.9 million shares changing hands.