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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: David Culver who wrote (762)	3/5/2001 6:23:46 PM
From: Mayer Tchelebon	Read Replies (1) \| Respond to of 11633

Very good deal for APF, even though 100% oil, which would reduce APF's NG ratio from 50% to 25-30%. However the economies of the deal make up for it. I spoke to APF this morning, they estimate 20-25% accretion to cashflow, which is also helped by the fact that the cashflow from the acquired company accrues to APF from last January (or part of it?). I do not see an arbitrage opportunity here, and there is no advantage in buying APF through AIE since (a) AIE is not marginable, and (b) AIE at 1.94 = AY for $9.70, not much savings, and (c) it is unclear (to me) whether the tendered shares will receive the April or May distribution. If all AIE shares are tendered for cash, 80% of them will receive cash. If all request APF units, 50% will receive APF units.