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Gold/Mining/Energy : Signature Brands Ltd.: (SBX:TSE) SGNTF

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To: Ally who wrote (480)5/10/1999 10:58:00 AM
From: Syncrude  Read Replies (1) of 776
 
Ally,

I think the exchange ratio would be based on the basis of contribution to the merged entity, not by the number of fully diluted shares of SBX. We don't have knowledge of what CDPlus brings to the table, so it is difficult to determine how many shares of the merged entity there will ultimately be.

As well, I do not agree that the new company can be called an Internet stock, but a narrow e-commerce distributor. As such, there is limited upside as compared to true Internet stocks which possess strong technology to its clients.
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