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Bronfmans to sell off Labatt stake.

Proving prior rumors correct, Brascan Ltd., part of Bronfman & Cos., sold its 37-percent controlling stake of Canada's John Labatt Ltd. to a group of underwriters for $993 million Canadian dollars.

According to analysts of the situation, several banks had been putting pressure on the company to sell some of its assets in order to reduce its debt load.

Officials at Brascan, however, denied any pressure from outside sources, noting that demand for new equity by Canadian investors prompted the sale of the brewing concern.

Brascan's chief financial officer told the Wall Street Journal that the sale of Labatt was "an opportunity that we couldn't pass up." Nonetheless, the deal was completed despite repeated assurances from company officials that the brewer was part of its core investment and not for sale.
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Title Annotation:Bronfmans and Cos.; John Labatt Ltd.
Publication:Modern Brewery Age
Date:Feb 22, 1993
Words:130
Previous Article:The beers of olde New York.
Next Article:Alcohol tax looms.
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