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Gold/Mining/Energy : Avenor (avr-tse) - Repap buyout (rpp-tse)
AVR 4.010-4.8%3:59 PM EST

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To: Phoenix who wrote (113)3/5/1997 3:18:00 PM
From: Dale   of 290
 
To All
There's an article on PC Qote Canada about S&P putting Avenor on cedit watch negative as a result of this deal. I guess repap has no rating already. This is starting to smell bad. I can't imagine Repap being so bad off that it can't spin off enough to generate operating revenue. For my money the market is strengthening for coated and pulp. A good running mill ought to be able to generate some serious cash in the near future. Avenor is practically getting this company for nothing compared to new building costs. Why is the market reacting so negative to all this?
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