Group Created with Sketch.
Volume 24 No. 117
  • Created with Sketch.
  • Created with Sketch.
  • Created with Sketch.

A BID FOR LABATT COULD COME AS EARLY AS TODAY

     Shares of John Labatt Ltd. continued to rise yesterday on
takeover rumors, with one Labatt director saying the board is
expecting a bid soon.  The anonymous director said speculation
that Onex Corp. CEO Gerald Schwartz would make a bid for Labatt
has been discussed at the board level: "From a corporate point of
view there is no bid, no offer, no nothing, but I think something
is imminent."  Analysts and industry observers speculate that
Onex will as early as today make a "hostile bid for the company"
at C$25/share, which would value the deal at C$2.35B.  However,
for the deal to work, Schwartz would have had to "pre-sell most
of Labatt's assets."  Schwartz has reportedly been shopping
around Labatt assets to various Canadian and int'l buyers, and
would likely be interested in "retaining some of the company's
entertainment assets."  Besides the brewery, Labatt owns the Blue
Jays, the CFL's Argonauts, Toronto's SkyDome and TSN (Paul Brent,
FINANCIAL POST, 4/13).