Avenor (avr-tse) - Repap buyout (rpp-tse) Message Board

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Gold/Mining/Energy : Avenor (avr-tse) - Repap buyout (rpp-tse)

AVR 4.090

-2.9%

3:40 PM EST

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To: John Bull who wrote (87)	2/22/1997 10:47:00 AM
From: william smith	of 290

I agree with you John. I bought RPP @ 4.47 (counting commish) believeing this is a good deal. The market is very nervous these days. If deal was done last summer it would of been no problem. Consoildation is under way in many sectors, but the deal with ABit. and Stone puts a little pressure on AVR. RPP has some great assest and this is a plus. The whole debt issue is over payed. This company is leveraged. Which means when paper prices drop than this company feels the effects quicker, but paper has bottomed out!! When the price starts to increase and I believe it will with the consoildation and creeping inflation this company will recover quicker. The effect of leveraging. I'm going through the deal this weekend (light reading at the lake) and I believe a 6:1 ratio will pass. In the short term we get hit but AVR/rpp value would increase 1+1=3 situation. If AVR gets a 8:1 deal than I see a 1+1=4 situation. So it is a case of AVR pay us now or the market pay us later. The worst case is if the deal falls through. I have several stock that have been involved in mergers/takeover. This is the usally pattern. Will P.S. The pulp and paper sector is out of favor!! It is a great time to pay (for us small investors). Remember last month gold stocks were trashed by everyone. Well this week the market changed there minds quickly. I'm glad I held ECO, TVX, RYO last week.

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