OSC gives Fonorola extension

Article Abstract:

Fonorola Inc., a Montreal, Quebec-based telephone company, has been given a one-month extension by the Ontario Securities Commission (OSC) to find bidders before approving the lifting of the company's poison pill. OSC's decision, which was handed down after Fonorola revealed that it is in negotiations with a number of potential bidders, was opposed by the Quebec Securities (QSC), which claimed to have the ultimate authority to decide Fonorola's sale. QSC issued a temporary ruling authorizing the lifting of Fonorola's poison effective immediately. Meanwhile, Toronto, Ontario-based Call-Net Enterprises Inc. has proposed to buy Fonorola for $1.6 billion and is awaiting the latter's lift on the poison pill.

Comment:

Is given 1-month extension by Ontario Securities Commission to find other bidders before it will lift firm's poison pill

Telephone Communications, Telephone services

Fonorola's poison pill quashed

Article Abstract:

Fonorola Inc., a long distance telephone company based in Montreal, Quebec, has been ordered to nullify its poison pill by Quebec Securities Commission in favor of Call-Net Enterprises Inc. of Toronto, Ontario. Call-Net's hostile takeover bid of C$60 per share has been rejected in accordance to Fonorola's poison pill, which calls for the approval of Fonorola management before considering any acquisition bid. Call-Net has filed the petition to remove the poison pill with the commission for its bid to be considered by the shareholders. The poison pill, however, was believed to limit shareholders' rights by some institutional investors and shareholder rights advocates.

Comment:

Is favored by Quebec Securities Commission w/ order to remove poison pill of Fonorola

Long Distance Telephone Svc, Long distance telephone services, Call-Net Enterprises Inc.

Rival snubs Philip scrap-metal assets

Article Abstract:

American Iron & Metal Co. owner Herbert Black has denied reports that his company is planning to buy the scrap-metal business of Philip Services Corp., saying he has no intention to do so because of the very high selling price. Black admitted he is considering buying some of the metal assets of Philips but decided not to submit its bid yet after coming to a conclusion that acquiring the unit will not add much value to its own operations. Philips Services has announced the sale of its scrap-metal unit in summer of 1998, noting it will use the amount it will be able to raise from the transaction to reduce its debt, which amounts to C$1.1 billion.

Comment:

Owner Herbert Black denies reports his company plans to buy scrap-metal business of Philips Services Corp

Secondary Nonferrous Metals, Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, Extruding, and Alloying, Nonferrous metals, Secondary metals, American Iron and Metal Co., Philip Services Corp.