Dominion Bridge Calls Kuhns Committee Plan "Unworkable".MONTREAL--(BUSINESS WIRE)--July 8, 1997-- Letter Urges Shareholders to Await "Serious" Proposals Being Reviewed Dominion Bridge Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : DBCO; VSE See DOS/VSE. VSE - Virtual Storage Extended : DMO DMO Debt Management Office (Bank of England) DMO Destination Marketing Organization DMO Defence Materiel Organisation (Australia) DMO Dental Maintenance Organization DMO Distributed Mission Operations .U) said today that proposals presented to Dominion Bridge's investment banker Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. Legg Mason Wood Walker by John Kuhns' "Committee to Revitalize Dominion Bridge" are "misleading and unworkable" and dismissed the committee's tactics as "corporate terrorism." In an eight-page letter to shareholders, the company calls FirstKey Project Technologies, Inc., which the Kuhns committee has proposed that Dominion Bridge acquire, "a startup company with no track record" and noted the complete absence of details of the proposed transaction, including potential dilution potential dilution The decrease in the proportional equity position of a share of stock that will occur eventually if additional authorized shares are actually issued. of existing stockholders. The letter also questions a Kuhns proposal that the company acquire the minority interest in its McConnell Dowell subsidiary, noting the "significant limitations imposed on privatization" under the laws of Australia where the subsidiary is based, as well as the unlikelihood that the committee could raise the approximately $US 45 million acquisition price. In addition to funds for the MDC (1) (Mobile Daughter Card) See riser card. (2) See Meta Data Coalition. privatization, the proposal exposes the committee to a number of other unfunded liabilities, the letter points out, including working capital and backlog for FirstKey, funding for a plan to issue contingent value rights, and backlog and working capital for Dominion Bridge's North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. . "Furthermore, the Kuhns committee's own documentation confirms that if the committee is successful, it will require Dominion Bridge to fund all of the committee's substantial costs, amounting to hundreds of thousands of dollars," the letter continues. Stating that "The Kuhns Committee has no intention of adding value," "has brought forward nothing positive," and "is using other people's money to fund" its activities, the letter urges stockholders to await the outcome of serious proposals now being reviewed that "bring value" to the company and not "succumb to the Kuhns committee's self-serving time pressure." Dominion Bridge Corporation, a Delaware corporation, is an international engineering infrastructure company, employing advanced materials technology with operations and projects in North America, Europe and Asia Pacific. This release was neither approved nor disapproved by the Vancouver Stock Exchange Vancouver Stock Exchange (VSE) A securities and options exchange in Vancouver, British Columbia, (Canada), specializing in venture capital companies. Vancouver Stock Exchange See Canadian Venture Exchange (CDNX). . CONTACT: L. B. Stauffer or Thomas D. Gibson, Media Consultant Porter, Le Vay & Rose, Inc. 212/564-4700 or Dominion Bridge Corp. Francois Morin 514/634-3550 |
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