Headline: Dominion Bridge Corporation Resumes Exclusive Acquisition Negotiations
With AMERICAN ECO CORPORATION
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MONTREAL--(BUSINESS WIRE)--Feb. 23, 1998--Dominion Bridge
Corporation (NASDAQ/NMS: DBCO;VSE:DMO.U) ("DBC") and AMERICAN ECO
CORPORATION (NASDAQ:ECGOF) (TSE:ECX.) ("AEC") announced today that
they have resumed exclusive negotiations for, among other things, (i)
a Private Placement of US $5 million of Dominion Bridge securities to
American Eco (ii) a US $25.0 million credit facility from American Eco
and (iii) the acquisition of Dominion Bridge by American Eco. The
parties also announced that they had met to resolve the outstanding
issues which had prevented the transaction from closing by the
deadline of 5:00 p.m. EST February 12, 1998. Michael McGinnis, Chief
Executive Officer of AEC, and Michel L. Marengere, Chairman and Chief
Executive Officer of DBC, indicated that the parties had encountered
differences as are expected in the normal course of business in
transactions of this nature between public companies and that these
had been overstated by the media. As at 5:00 p.m. Friday February 20,
1998, AEC had fulfilled the first milestone by completing the Private
Placement of US $5 million.
"As a result of the completion of the Private Placement, Michael
McGinnis will be named to the Board of DBC and serve on the DBC
Executive Committee," said Marengere, who is chairman of the DBC
Executive Committee.
Management of both companies will now proceed with the second
phase and undertake negotiations for the US $25 million credit
facility and the Definitive Agreements for the acquisition of DBC by
AEC.
Dominion Bridge was established in 1879. The company is active in
the international engineering and infrastructure markets. It manages
projects and operates facilities in North and South America, Europe
and the Asia Pacific.
Dominion Bridge Corporation's subsidiaries are Dominion Bridge,
Inc., Steen Becker, Inc. and Davie Industries. Its Australian
subsidiary, McConnell Dowell Corporation, is a major Asia Pacific
engineering firm.
This news release is neither approved nor disapproved by the
Vancouver Stock Exchange.
CONTACT: Porter, Le Vay & Rose, Inc.
L. B. Stauffer
(212) 564-4700
or
Dominion Bridge Corporation
Francois Morin
(514) 634-3550
KEYWORD: NEW YORK
INDUSTRY KEYWORD: BUILDING/CONSTRUCTION MERGERS/ACQ
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