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Gold/Mining/Energy : Air Canada is taking off? -- Ignore unavailable to you. Want to Upgrade?

To: John Sladek who wrote (835)	9/16/1999 6:36:00 PM
From: Stephen O	Read Replies (1) \| Respond to of 1033

Air Canada: Onex Invites Air Canada to Help Find a Solution 9/16/99 14:41 99/09/16 Market News Publishing Inc. No: 000306 ONEX CORP ("OCX-TM") AIR CANADA ("AC-TMVYW;ACNAF-Q") - Onex Invites Air Canada to Help Find a Solution Onex Corporation chairman and chief executive officer Gerald Schwartz, in Montreal to meet with institutional investors and business leaders, invited Air Canada management to end its three-week silence and discuss a constructive solution to the Canadian airline industry's chronic problems. "No one disputes that Canada's airline industry, as it is now structured, doesn't work. It doesn't provide meaningful competition, decent returns to shareholders, job security, or truly national service," said Mr. Schwartz. "Onex has tabled a proposal that addresses all of those issues." Mr. Schwartz said that he is puzzled by Air Canada's apparent unwillingness to discuss a solution to the industry's problems and by its characterization of the Onex proposal as hostile. "Under our proposal, the headquarters of the new airline is in Montreal, the culture will remain fully bilingual, the name will remain Air Canada, and the senior management of the new airline will most likely come out of Air Canada," said Mr. Schwartz. "No one will be forced out of a job in Montreal. What part of 'Yes' don't they understand." He said he appreciates the obligation of Air Canada to maximize its shareholder value. "But you have to look at the value of Air Canada before Onex brought forward its proposal," said Mr. Schwartz. "The Onex proposal is already responsible for increasing Air Canada shareholder value. Stock analysts and investors who follow this industry closely view the value of our offer as more than $12 a share, which is almost double where the Air Canada share price was prior to the Onex proposal."