Dofasco Inc -
Post says Dofasco boosted by takeover talk
Dofasco Inc DFS
Shares issued 85,979,211 1999-08-05 close $28.45
Friday Aug 6 1999
The Financial Post reports in its Friday edition that two weeks after posting its best financial results in a decade, shares of steelmaker Dofasco continued to climb on Thursday as rumours circulated in the market that the company is in play. Reporters Stephen Miles and Barry Critchley say that Dofasco shares gained $1.40, or 5.2 per cent, to a 52-week high of $28.30 on almost seven times average daily volume of 250,000 shares. The stock has climbed 11 per cent in the past three trading sessions. After the market close, Dofasco, at the request of the Toronto Stock Exchange, issued a statement saying it was unaware of any factors affecting its market activity. Analysts, however, say there is talk that the Hamilton-based company has been shopping itself around to potential United States buyer. One industry source, who demanded anonymity, says Dofasco could reach up to $34 a share and a deal could come up soon. Michael Locker, a steel analyst at Locker Associates in New York, says there is persistent talk that Dofasco is looking for a suitor, but the buyer is still a mystery.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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