Clarington recognizes CI bid

(November 30, 2005) Clarington’s board of directors has determined that a bid from CI does constitute a “competing transaction” under Clarington’s support agreement with Industrial Alliance. The move appears to give CI the upper hand in the battle for Clarington, at least for now.

While non-binding and subject to certain preconditions, the proposal provides that CI will make an offer of $14.75 per Clarington common share, Clarington said in release issued Wednesday morning, on terms and conditions that are substantially the same as Industrial Alliance’s offer of $14.25 per share, which was mailed to shareholders on November 20.

CI’s offer amounts to $285 million, while IA’s bid is worth $273 million.

Clarington has advised Industrial Alliance of its determination, noting that CI’s proposal is “more favourable from a financial point of view” than IA’s offer. Under the terms of Clarington’s agreement with IA, the firm has the right to match the CI proposal and make a new offer within five business days.

The Clarington board, which had argued that CI’s bid was not official since it had not been mailed to shareholders, also reiterated that it has not withdrawn or modified its recommendation of the IA offer.

(11/30/05)

Staff

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