American Eco (ECGOF, ECX on Toronto exchange) Message Board

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Gold/Mining/Energy : American Eco (ECGOF, ECX on Toronto exchange)

ECX 2.080

-1.0%

Jan 23 9:30 AM EST

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To: gsun who wrote (1702)	2/14/1998 1:59:00 PM
From: Duncan	Read Replies (1) of 2841

It's my belief that ECO's acquisition of DBCO will go through...in time...primarily because ECO has the majority backing of DBCO's board...except for Marangere and/or Matossian...not to mention the backing of a disenchanted and vocal group of DBCO shareholders...hence the reason for the drop in DBCO's stock price yesterday. From my experience in semi-hostile takeover situations, I don't believe this shareholder Committee will be successful in removing Marangere or Matossian...but their behind the scenes pressure will almost certainly help ECO's attempt to buy out DBCO. On a different note, let's not be surprised by the latest DBCO move. As I noted here or on the Motley Fool board...can't remember which, management's golden parachutes were not that significant...relative to some that I've seen...so it's fair to assume that Marangere and/or Matossian botched this deal because they are 1) certain they will be terminated and 2) want a larger payoff. It's amazing how individuals can put their own interests in front of shareholders'...but that's greed for you...and that's the very reason DBCO has performed so lousy...but it's also the very reason ECO has a huge opportunity. So I thank those greedy bastards...and am happy to wait on the sidelines through this soap opera. Furthermore....<<By ROBERT GIBBENS For The Financial Post ÿSources near the talks said the main sticking point is Dominion management's claim for compensation for being ousted under the bid. ...>> Bingo!!! If ECO is working with good legal counsel...and I assume they are...it's my guess that ECO's Letter of Intent offer specifically asked for a reduction or delay in paying out the golden parachutes. This is one of the many conditions / negotiating points usually put in Letter of Intent arrangements...and the very one that upset Marangere and Matossian...just speculation on my part. It's a chess game. Perhaps Mike McGinnis knew Marangere would shoot himself in the foot...create a faction within the DBCO shareholder ranks...and ultimately lower the value of DBCO. If so, McGinnis may have just pulled out his trump card. Looking good from my vantage point. Duncan

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