Péladeau’s gambit to seize control at Transat fails to woo proxy firms

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MONTREAL - Media magnate Pierre Karl Péladeau has failed to convince a pair of leading proxy advisory firms to back his bid to overhaul the board at Transat A.T. Inc. and seize effective control of the travel company.

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MONTREAL – Media magnate Pierre Karl Péladeau has failed to convince a pair of leading proxy advisory firms to back his bid to overhaul the board at Transat A.T. Inc. and seize effective control of the travel company.

Glass Lewis and Institutional Shareholder Services (ISS) are both recommending that shareholders vote against the Quebecor CEO’s proposal to install himself and two associates on a slimmed-down board at the travel company where they would comprise half of the directors.

In a report this week, ISS says the eight directors nominated by Transat are better qualified for the job and that the Montreal-based outfit has shown encouraging signs of recovery through much of the past year.

Quebecor CEO Pierre Karl Péladeau speaks to media following the company's annual general meeting in Montreal on Thursday, May 8, 2025. THE CANADIAN PRESS/Christopher Katsarov
Quebecor CEO Pierre Karl Péladeau speaks to media following the company's annual general meeting in Montreal on Thursday, May 8, 2025. THE CANADIAN PRESS/Christopher Katsarov

Péladeau, whose investment firm Financière Outremont Inc. holds the second-largest stake in Transat at 9.5 per cent, is calling for a strategic review and balance sheet restructuring in the wake of a five-year share price decline that tops 50 per cent.

The Air Transat owner has struggled amid stiff competition for vacation destinations and heavy debt, though it announced a major restructuring of pandemic-era debt last year that forgives hundreds of millions of dollars owed.

The standoff is set to come to a head on March 10, when the company will hold a shareholder vote on the proposed changes.

This report by The Canadian Press was first published March 3, 2026.

Companies in this story: (TSX:TRZ)

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