BRIEFLY / AIRLINES : Onex Moves to Counter Air Canada Plan

Canadian conglomerate Onex Corp. moved to counter a shareholder rights plan installed by takeover target Air Canada by pressing the airline to hold a special meeting by Nov. 8 to consider its bid. The carrier said it will “vigorously contest” the request, which Onex said it brought to a Canadian court. The board of Air Canada announced the rights plan to give the carrier breathing space to find alternatives to the hostile $671-million bid. It suggested a shareholder meeting for Jan. 7, long after the offer expires Nov. 4. Toronto-based Onex, with the backing of American Airlines parent AMR Corp., last month proposed buying Air Canada and struggling Canadian Airlines Corp., then merging them into a single entity. The bid was made soon after the Canadian government’s Aug. 13 announcement that competition rules would be suspended for 90 days to allow the private sector to find a solution to Canadian Airlines’ financial woes. Air Canada said the Nov. 8 meeting deadline would undermine that 90-day window.