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

To: Luke12_15 who wrote (996)	11/15/1999 1:48:00 PM
From: Stephen O	Respond to of 1033

Fair to shareholders eh. Not according to these people. They don't like your beloved Mr Milton. MONTREAL (Dow Jones)--Letko Brosseau & Associates said the proposed debenture to be issued by Air Canada (ACNAF) to Caisse de depot et placement du Quebec, and possibly to others, "falls well short of fair treatment of Air Canada's shareholders and has the potential of being highly detrimental to their economic interests." As reported, Air Canada will issue a C$150 million convertible unsecured subordinated 7.25% debenture maturing in November 2009 to the Caisse, and has the option to issue up to an additional C$150 million of debentures. The debentures are convertible at the Caisse's option into the maximum permitted number of Air Canada common shares, with the balance into Class A shares, at a 20% premium above the 30-day average trading price one month following completion of Air Canada's planned buyback of up to 36% of its shares at C$16 each. In a news release Friday, Letko Brosseau, an investment manager that holds more than 7 million Air Canada shares for its clients, said "We are strongly opposed to the issuance of this debenture...and consider it an unacceptable appropriation of Air Canada's value for the benefit of a single shareholder." Air Canada is a major air carrier. -Wendy Lampert, Dow Jones Newswires; 416-306-2100 (END) DOW JONES NEWS 11-12-99