Judging by the DBCO 10Q just filed, it does look like we may get a 5 for 1 deal, but DBCO shareholders can't convert below $15/share.
This was also on the Financial Post
Tuesday, February 24, 1998
Dominion Bridge deal back on track
By ROBERT GIBBENS
For The Financial Post
MONTREAL - Negotiations for American Eco Corp.'s US$93-million takeover of Dominion Bridge Corp. were back on track yesterday, with both sides reducing their rhetoric and promising a signing "within several weeks." In Houston, American Eco president Michael McGinnis said he will join Dominion's board and executive committee, and his company has taken up US$5 million of Dominion treasury shares, giving it an equity stake of almost 6%. American Eco is negotiating with its lenders for a US$25-million loan to Dominion, he said. American Eco's total debt will remain less than US$100 million.
Talks will continue on a management agreement and the terms for the offer to all shareholders, he added. "It may take several weeks to reach a definitive agreement." Both companies, which operate in the international engineering and construction sector, said management on both sides has agreed to co-operate on common goals.
Michel Mareng,re, Dominion's chairman and chief executive, and chief operating officer Nicolas Matossian will stay during a transition period. "We aren't liquidators and we want to keep Dominion intact, including its Australian unit, while streamlining its operations," McGinnis said.
Dominion is headquartered in Delaware and operates from Montreal, while American Eco operates out of Houston and Toronto. The market received word of resumed talks with caution. Dominion shares (DBCO/NASDAQ) closed yesterday at US$111/16, down 1/8 and American Eco (ECGO/NASDAQ) at US$119/16, up 1/16. |
