Transat AT Inc. says talks with Pierre Karl Peladeau regarding the potential acquisition of the travel company have ended without a deal. Peladeau had made a non-binding offer for Transat of $5 per share in cash if the purchase offer from Air Canada didn’t materialize.

“Considering the current share price, the price offered no longer provides a reasonable basis to envision receiving the level of shareholder approval required in order to allow the transaction to proceed,” Transat said in a news release.

It added that Peladeau’s investment firm confirmed to the company that it was withdrawing from discussions.

Shares in the company closed at $7.21 on the Toronto Stock Exchange on Friday but dropped 8.9 percent to $6.57 in afternoon trading after the announcement on Monday.

The Peladeau offer has been rejected by Transat’s largest shareholder, Letko Brosseau. In mid-May, Peladeau claimed to be no longer interested in this purchase, while Transat replied that it had not been formally notified of this lack of interest.