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Gold/Mining/Energy : Air Canada is taking off?
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To: Charles T who wrote ()11/4/1999 12:53:00 AM
From: John Sladek  Read Replies (1) of 1033
 
To All, Comparison of Onex and Air Canada Proposals. This is taken from a press release from today (or was it yesterday?)

AIR CANADA VERSUS ONEX-AMR
         A comparison of the attributes of the Air Canada and Onex-AMR proposals
         ATTRIBUTE                       AIR CANADA PROPOSAL   ONEX-AMR PROPOSALS
         Gross cash to shareholders             $1.1 billion       $1.094 billion
         Shareholders pay                                  -         $342 million
         to exercise rights
         Net cash to shareholders               $1.1 billion         $752 million
         Ownership by Air Canada
         shareholders
                                      Basic             100%                 69%
                              Fully diluted              90%                 60%
         Strike price where dilution occurs        $24 - $28               $8.25
         Price per share                     $16 (for 36.4%)        $13 (for 46%)
         Conditionality                            Virtually   Highly conditional
                                               unconditional      (several legal,
                                                                   regulatory and
                                                                    other issues)
         Alliance                                     Star -           Oneworld -
                                            Air Canada flies   Canadian flies 50%
                                          89% of 1600+ daily        of 700+ daily
                                             transborder and      transborder and
                                               international        international
                                        flights - $1 billion    flights - reduced
                                   in extra operating income     operating income
         Alliance liquidated damages          $250 million -       $740 million -
                                            declining to $37    declining to $132
                                          million in year 10   million in year 10
         Value contribution       Approximately $500 million      Benefits accrue
         from partners                       to shareholders         only to Onex
         Carried interest and                No intermediary  Intermediary (Onex)
         fees to intermediaries                                    receives 31.5%
                                                               ownership at $8.25
                                                              plus 2 million free
                                                              shares as incentive
                                                                             fees


Hope this is useful.

Regards,
John Sladek

P.S. To Alomex, I know I owe you a response to your last post, and I haven't forgotten. I'm short on time, but promise that I'll try to get you a response by the weekend. BTW, do you remember this post? #reply-2626335

PPS. Nomination for the most off-base prediction about Canadian Airlines: #reply-1892354

2-Aug-97 This company [CA] is beening dressed up to sell. One of two large airlines (guess) will make a offer of $10 - $12 within the next year
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