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Gold/Mining/Energy : EATON'S IPO (JUNE 2ND) -- Ignore unavailable to you. Want to Upgrade?

To: Link Lady who wrote (23)	3/2/1999 10:40:00 PM
From: Link Lady	Respond to of 68

Paste whole story in case link disappeared >>U.S. companies have also been prominent buying up developing technology firms north of the border. As well, there have been rumors that software concern Corel Corp. was in the sights of Adobe Systems Inc. and that retailer T. Eaton Co. was being checked out by Federated Department Stores Inc. << canoe.com Canadian companies ripe for U.S. picking TORONTO, March 2 (Reuters) - U.S. companies shopping for corporate bargains need look no further than their northern neighbor where a battered Canadian dollar and bargain stock prices are adding up to fire sale prices. "Canada's very cheap and our stock market has substantially underperformed the U.S. for years now and the currency is very weak, so it's a bargain for American companies to buy Canadian companies," said Sherry Cooper, chief economist at Toronto-based brokerage Nesbitt Burns Inc. Two mid-sized Canadian companies became targets of larger American buyers this week in what economists and market watchers believe is part of an increasingly common trend. On Monday, Canada's successful Club Monaco Inc. , a fashionable chain of about 125 clothing stores in North America and Asia, agreed to be bought out by one of the most famous U.S. designer labels, Polo Ralph Lauren for C$13 a share or about C$80 million. In the more pedestrian area of electrical components, General Chemical Group Inc. said on Monday it would acquire Canadian wire and cable maker Noma Industries Ltd. for C$330 million or C$9.25 a share. "Expect more," said Fred Ketchen, senior vice-president and director of equity trading at Toronto's ScotiaMcLeod Inc., who also cited the weak currency and the relative success of some Canadian firms for their allure. In 1998, U.S. companies snapped up 120 Canadian firms for a value of C$16.9 billion, up sharply from the year before when 104 deals were announced worth just C$8.1 billion. U.S. companies have also been prominent buying up developing technology firms north of the border. As well, there have been rumors that software concern Corel Corp. was in the sights of Adobe Systems Inc. and that retailer T. Eaton Co. was being checked out by Federated Department Stores Inc. The Canadian dollar touched a record low of around 63 U.S. cents last August and, despite a slight recovery, weak commodity prices have kept the currency from making a convincing rebound. "I just think that we're ripe for the picking. I think that you'll find more takeovers of Canadian companies by U.S. organizations along the way as we go through the balance of this spring," Ketchen added. Some Canadian companies who hunger for access to the largest economy in the world are actually eager to find big, strong American suitors. "Many of the Canadian companies see no bright future for their companies in Canada, that they need to have access to other markets, especially the U.S. market," said Robert Normand, chief economist at Montreal-based brokerage Levesque Beaubien Geoffrion. Cooper, who expressed surprise that there hasn't been an even greater flurry of U.S. buying, said a merger with an American partner is often the next logical step for a maturing mid-sized Canadian company. "It's very difficult for a Canadian company to maintain a critical size without moving into the U.S. market and it's very expensive for Canadian companies themselves to move south, so it generally works better when there's a merger of some sort or a Canadian firm is bought by an American," she said. Cooper said the resources sector, where stock prices are particularly depressed, would be a prime area for an upswing in mergers. But any Canadian company which is successfully operating in any field could be a vulnerable and juicy target. "I think it will be right across the board except for the areas where it's essentially prohibited...or where there are government restrictions," said Peter Jones, executive vice-president of Toronto-based First Marathon and its head of investment banking. It goes both ways, as multibillion dollar purchases in the United States by such companies as telecommunications carrier Teleglobe Inc. and telecoms equipment firm Northern Telecom Ltd. in recent months clearly illustrate. "I think it will continue to go both ways but I do recognize that the low Canadian dollar and the relative valuation difference in a lot of industries will make Canadian companies look attractive to American buyers," said Ian Macdonell, partner at investment bank Crosbie & Co. which puts out a quarterly mergers and acquisitions report. According to the report on 1998 activity, Canadians made 212 purchases in the United States, an increase of 11 percent from 1997. The value of those deals rose 40 percent over the prior year to C$33.9 billion. ($1 $1.52 Canadian)

To: Link Lady who wrote (23)	3/3/1999 12:25:00 PM
From: n.p.	Read Replies (1) \| Respond to of 68

I think they abandoned eaton's a long time ago stats show that family owned co. do not last long between generations seems that eaton brothers had different views and goals ? They have made to many changes in such a short time and cannot stick with one plan. The stock touched below 2.00 today and looks like it will go down further. IF they went back to the basics of a normal retailer e.g sears they might have a chance but a company that large cannot just sell soft goods and expect to survive a this market ? still waiting for further sale on the stock n.p.

To: Link Lady who wrote (23)	3/3/1999 1:29:00 PM
From: Serge Collins	Respond to of 68

Wendy: I think many Eaton's stores have opened up bargain basements. The one I shop at has a basement full of bargains (and some are quite good), and that can be a shock to the senses for people who are accustomed to thinking of Eaton's as a high quality store. They still sell quality clothing, but I think they are trying to appeal to more average shoppers as well. Some of the lines they carry are close to Wal-Mart status, but times have changed and Eaton's is trying to adapt to this new era. Of course the big change has been the refocus on clothes and the move away from household items. They're simply not the same retailer as they were, the general merchandise theme has been abandoned to Sears, who pretty well have it all to themselves now. (By the way, Sears customer service is absolutely abysmal) The company is far from being out of the woods and much needs to be done. Barring a takeover (which is still possible, albeit unlikely) this company can go either way in the next year. There was a report in the Globe last week about one finance company cutting off the company because of certain fears about being paid. I wouldn't be surprised to see CCAA again, but I sure hope they can pull it off. Anyone thinking of putting money on Eaton's right now should do so with speculative money, and not bet big, as you could end up losing it all.