LGS Board of Directors Recommends Acceptance of IBM Offer
to LGS Shareholders
MARCH 24, 2000
MONTREAL, QUEBEC--At a meeting held on March 23, 2000, the Board
of Directors of LGS Group Inc. resolved to recommend that LGS
shareholders accept the IBM offers to purchase all outstanding
shares of LGS.
At that meeting, the Board of Directors received the report of the
Independent Committee, which concluded that the offer was fair to
the holders of Class A Subordinate Voting Shares.
The LGS Directors' Circular relating to the IBM offer has been
mailed today to holders of LGS Group Inc. Class A subordinate
voting shares and Class B multiple voting shares. The IBM offer
is for CDN$19.00 for each issued and outstanding LGS Class A
subordinate voting share and Class B multiple voting share.
Canadian resident shareholders have the choice of receiving
consideration in cash or in shares of IBM Acquisition Inc. that
are exchangeable for common shares of International Business
Machine Corporation. Non-Canadian resident shareholders have the
choice of receiving consideration in cash for the U. S. dollar
equivalent of the offer price, or in common shares of
International Business Machines Corporation. The IBM offers
expire on April 5, at 5:00 p.m, Toronto time.
LGS Group Inc. (LGSA at NASDAQ, LGS.A at TSE) is one of Canada's
largest information technology consulting firms specializing in
management and systems integration. With annual sales of $230
million in the financial year ended March 31, 1999, LGS currently
employs approximately 2,000 professionals in 20 offices in Canada,
the United States and Europe. The company is active in most areas
of the private and public sectors.
This release may contain forward-looking statements that involve
risks and uncertainties which might cause the actual results to
differ materially from those projected. Potential risks and
uncertainties include the ability to procure, properly price,
retain, and successfully complete projects, the availability of
technical personnel, and competition. These risks and
uncertainties are discussed under the heading "Risk Management" in
the Company's Annual Report. |
