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To: Dale Baker who wrote (30609)	7/23/2002 7:03:55 AM
From: Henrik	Read Replies (1) \| Respond to of 118717

Dale, my understanding is that PGS/PGO must bring US$200mil to the merger table. That was based on the expected sale of Atlantis prior to the merger. That is not likely to go ahead in time is my guess. The merger deadline is now set for sometime mid-August. PGS will have to find the $200mil somewhere. I just reread the downgrading notices of PGS by credit rating agencies Moody and S&P. In short - it is being suggested that due to the low rating of PGS it may be difficult for Veritas to borrow on acceptable terms in a merger situation. Dale, here is a list of recent headlines re. PGS. I don't expect you to understand it all, but ther is not one single positive note among them. hegnar.no ============================================= I PGS-prospektet i forbindelse med Veritas-fusjonen advares det mot ytterligere nedjusteringer fra kredittratingbyråene. Artikkel av: Øystein Byberg (5.7.02 12:34) Reuters melder at PGS-prospektet, som er utarabeidet i forbindelse med Veritas-fusjonen, advarer mot ytterligere nedjusteringer fra kredittratingbyråene. Moodys har allerede nedjustert PGS' usikrede gjeld til Ba1, tilsvarende "non-investment" kredittrating. Standard Poor's vurderer PGS' gjeld til BBB-, som er den laveste "investment grade"-ratingen. Fitch, IBCA, Duff & Phelps har også ratet PGS sin senior usikrede gjeld til BBB-, opplyses det i prospektet. - Dersom en eller flere av disse byråene fortsetter å rate PGS sin gjeld til under "investment grade" eller hvis kredittratingen for VGS etter fusjonen er under "investment grade", kan VGS ha problemer med å oppnå fiansiering og VGS sine kostnader ved å oppta ytterligere finansiering eller refinansiering av eksisterende gjeld kan muligens bli økt betydelig, heter det i prospektets oversikt over risikofaktorer ved fusjonen.