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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: mick who wrote (6109)	2/25/1999 1:23:00 PM
From: johnlag	Respond to of 24925

REL - Know any hungry corporate lawyers?

To: mick who wrote (6109)	2/25/1999 1:43:00 PM
From: VisionsOfSugarplums	Read Replies (2) \| Respond to of 24925

REL - this would be one situation where I would like to see some sort of inspection. REL does an acquisition of $127 million in Aug/98, uses a bridge facility of $60 million to pay for part of it. Stock is trading in the range of $10 to $13. Does a flow through around $10.00. Just before the convertible debenture issue is announced, the stock starts falling. An analyst had spread the rumour that the bank called the loan (and, despite the fact that many in the industry believed it, it was false - the bridge facility was current debt but not called). Convertible debenture issue is announced - stock gets hammered more (shorts increase per Dec 15 short report. Shorts can also cover if they get in on a cheap convertible deben). REL cancels the debenture when they're trading around $5 and shorts are now at the highest. REL thinks it will be too dilutive for shareholders? or doesn't think they could sell it? FWIW, it also happens that CIBC world markets is an adviser to Dominion and CIBC Wood Gundy was part of the underwriting syndicate for REL's convertible debenture. CIBC bank also formed part of the syndicate that loaned the bridge facility to REL. CIBC was very quiet re trades on this stock - no big buys, some selling in early Feb. They're a big company - could mean squat. First Marathon says Dominion paid $3.96 a BOE - which tells me REL's reserve numbers have not changed much. And definitely not enough to imply a $6 - $8 drop in the stock price. I think the whole thing is strange enough that a look into it wouldn't hurt. Will it happen? I doubt it. The real test will be how many shareholders tender. Regards, t.