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

To: jim who wrote (961)	11/2/1999 9:38:00 PM
From: Mike	Read Replies (1) \| Respond to of 1033

Air Canada's new offer was not much of a sweetener. They are just effectively kicking out a 300 million dollar dividend to its shareholders. When both are examined, AC clearly has the superior offer on the table right now, in terms of CASH, and shareholder Equity. Onex will counter this week with their last offer. The stakes are getting too high now. AC will have to get more equity investors after Onexs counter offer as they cant just keep giving out cash that is shareholders allready. Onex can promise the same thing. One thing though whihc I like a lot is that 100% equity is maintained by the existing shareholders in the AC offer and 10% dillution only takes place between 24$ and 28$, at that point who cares, because well all be rolling in the green stuff by then if we hold. Personally, I would take the 16$ if I was blessed with the opportunity to take 100% cash, and move on to the next play. Mike