By Timothy Le Riche, Sun Media. Wednesday, March 21, 2001.
The Calgary Sun
Takeover target Luscar warned yesterday that the Sherritt Coal bid could
draw unit holders into their own Cuban crisis.
The Cuba argument was presented as Edmonton-based Luscar officially rejected
the $900-million Sherritt Coal Partnership bid in a mailout to unit holders.
"There are U.S. government restrictions relating to Sherritt, including
potential liabilities in respect of Cuban properties confiscated from a U.S.
national," cautioned Jack McMahon, president and CEO of the Luscar Coal
Income Fund.
McMahon also warned unit holders that a legal challenge by a Sherritt
International Inc. debenture-holder could quash dividends.
That means any unit holders who choose a share swap option could lose
dividends, he claimed.
Sherritt Coal is a partnership between the Ontario Teachers' Pension Plan
Board and Sherritt International Inc., which has Cuban operations.
Sherritt Coal made its hostile bid Feb. 20.
Sherritt's bid, which expires April 17, is for $3.50 in cash per unit, or
$2.38 cash per unit and just over a quarter of a Sherritt International
restricted voting share.
The cash portion of the bid is $317 million, and the balance of the $900
million is from debt payout.
Patrice Merrin Best, Sherritt spokesman, said the company is operating
legally in Cuba and the debenture lawsuit is "completely without merit."
Copyright © 2001, Canoe Limited Partnership. All
rights reserved. | 