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Transat surge after posting sales talks with multiple suitors

Transat A.T. (TRZ.TO) announced on Tuesday that it is in preliminary negotiations with more than one party on the possible sale of a travel agency based in Montreal.

The company said in its statement that no transaction was decided.

Transat said the preliminary discussions were the result of "expressions of interest" he had received. The company has set up a special committee of independent directors to evaluate proposals with the help of financial and legal advisors.

The company added that the negotiations have no impact on Transat customers or employees that work as usual.

Transat shares rose by more than 36% to $ 7.72 at 10:17 hours.

The announcement comes when Transat holds an annual meeting in Montreal on Tuesday.

Last month, Transat chairman Jean-Marc Eustache refused to sell an airline he co-founded 33 years ago because the company is facing growing competition and higher costs.

"I know it's not for me," Eustache said in response to an analyst's question during a conference call in March. "You need the airline to bring customers to the hotel business, especially at the beginning."

Transat offers packages of accommodation, hotel accommodation and air transport under its Transat and Air Transat brands. It employs more than 5,000 employees.

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