LABATT BOARD RECOMMENDS "NO SALE" TO COMPANY SHAREHOLDERS
John Labatt, Ltd., the owners of the Blue Jays, CFL
Argonauts, and TSN, recommended that shareholders not tender
their shares to LBT Acquisition Corp. (a subsidiary of Onex
Corp.) before a detailed evaluation of the offer is completed.
Labatt issued a statement yesterday calling the offer of C$2.3B,
or C$24 a share, "unrealistically low." Labatt will release
their recommendation for shareholders on May 29 (Drew Hasselback,
TORONTO STAR, 5/23). Labatt President George Taylor told the
Toronto GLOBE & MAIL that they hope to "spark an auction that
will bring a significantly higher price for the brewing giant."
Michael Palmer, an analyst at Equity Research Associates in
Toronto, said C$27-28 a share "would be doing shareholders a
great favor" (Susan Bourette, Toronto GLOBE & MAIL, 5/23).