The board of FORDING INC. has unanimously recommended that shareholders reject the take-over offer made by SHERRITT COAL ACQUISITION INC. Sherritt has offered to purchase all of the outstanding Fording common shares at $29.00 each. On Thursday, Nov. 7, it was trading at about $32.50.
The Fording board listed several reasons to reject the offer, including: the price-per-share being offered is too low; the offer does not recognize the underlying value, record of performance and future prospects of Fording; the offer is highly leveraged and conditional; and it may not be allowed under Canada's Competition Act.
A full copy of the directors' circular is available on the web site www.fording.ca
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