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Ankara deal not affected by Lavalin selling shares.

Ankara deal not affected by Lavalin selling shares

Negotiations between UTDC and Ankara, Turkey have not been affected by the anticipated sale of nearly half of the Kingston, Ont.-based company, says a UTDC official.

Montreal-based Lavalin Industries Inc. announced in June that it intends to sell its 49-per-cent interest in UTDC, the majority shareholder of Thunder Bay's Can Car Works.

"The sale hasn't entered into the negotiations at all," said Bob Gawley, UTDC's manager of marketing communications.

At the time of the announcement a consortium led by Asea Brown Boveri Inc. of Montreal and Westinghouse Canada Inc. of Hamilton had been identified as a potential buyer.

However, on July 15 Thunder Bay-Atikokan MP Iain Angus issued a statement to provincial Transportation Minister Ed Philip urging the minister to protect the employees of Can Car in the event that its only Canadian competitor, Bombardier of Montreal, buys Lavalin's shares of UTDC.

In his statement Angus reminded Philip that the province holds the remaining 15-per-cent shares of Can Car. He stated that "in recent years there is every indication that companies are buying into or buying out their competitors and then shutting them down in order to eliminate competition."

Angus asked that "the government of Ontario ensure that if Bombardier does acquire all or part of Lavalin's shares in UTDC that specific and legally binding guarantees be provided the workers at Can Car and the community of Thunder Bay that would prevent Bombardier from shutting down the Thunder Bay operation."

In an interview Angus admitted that Bombardier is only one of a number of potential buyers of Lavalin's shares of UTDC. He said he issued the statement as a caution to the province after reading media reports which indicated that Bombardier may be interested in the purchase.

"I'd rather do it ahead of time, than see the deed done with no protection," he said.
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Title Annotation:anticipated sale of Lavalin Industries Inc. shares of stocks in UTDC Inc. will not affect negotiations with Ankara, Turkey
Publication:Northern Ontario Business
Date:Aug 1, 1991
Words:313
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