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MAPLE LEAF FOODS AND CORPORATE FOODS PLAN TO MERGE

 MAPLE LEAF FOODS AND CORPORATE FOODS PLAN TO MERGE
 TORONTO, April 24 /PRNewswire/ -- The boards of directors of Maple


Leaf Foods Inc. (TSE: MLF) and Corporate Foods Limited (TSE: CFL) announced jointly today that Maple Leaf Foods has made a proposal to the board of directors of Corporate Foods regarding the merger of the two companies.
 Shareholders of Corporate Foods were advised of the proposal to merge Corporate Foods with Maple Leaf Foods at the company's annual meeting held today in Toronto. Under the terms of the proposed transaction, shareholders of Corporate Foods will receive 1.15 common shares of Maple Leaf Foods in exchange for each common share of Corporate Foods. Maple Leaf Foods currently owns 66 percent of Corporate Foods shares and would own 100 percent of Corporate Foods after the merger. On April 23, 1992 the closing price of Corporate Foods common shares on the Toronto Stock Exchange was $17.25 and the closing price of Maple Leaf Foods common shares on the Toronto and Montreal exchanges was $17.125 and $17.25 respectively.
 The transaction is subject to the approval of Corporate Foods shareholders other than Maple Leaf Foods. An independent committee of the board of directors of Corporate Foods has been appointed to study the proposal and to make a recommendation regarding it. The committee has retained Nesbitt Thompson Inc. as its financial advisor in connection with the proposal.
 It is anticipated that a management information circular describing the merger will be mailed to Corporate Foods shareholders before the end of May, and a special meeting of the Corporate Foods shareholders to consider the merger will take place by the end of June, 1992. The transaction would take effect as soon as practicable after approval at the shareholders meeting.
 Charles Bowen, president and CEO of Maple Leaf Foods stated that, "The merger of the two companies will have significant benefits to both companies and their shareholders, as a stronger business will result. If the proposal is not accepted by the Corporate Foods shareholders, Maple Leaf Foods will continue with its current 66 percent position in Corporate Foods."
 As a result of the merger, Hillsdown Holdings' current 56 percent ownership of Maple Leaf Foods will be reduced to 51 percent. Bowen also said that Maple Leaf Foods has been advised by Hillsdown that following the completion of the transaction it is Hillsdown's intention to acquire a sufficient number of common shares to restore its ownership to the current 56 percent level.
 Maple Leaf Foods is Canada's largest food processing company with operations across Canada, in the United States and Europe. The company's products include fresh and prepared meats, poultry, flours, bakery mixes, fresh and frozen bakery products, seafood and animal feeds. Its products are sold to retail, food service, wholesale, agricultural and industrial customers worldwide.
 Corporate Foods is Canada's leading manufacturer and distributor of bakery products, sold both under the company's own brands and private label brands to the retail and food service industries.
 -0- 4/24/92
 /CONTACT: Art Devlin, senior vice-president/corporate affairs, 416-926-2047 or Lewis N. Rose, chief financial officer, 416-926-2023, both of Maple Leaf Foods; Norman T. Currie, president/milling & baking of Maple Leaf Foods Inc. and chairman of Corporate Foods Limited, 416-622-9700; or Robert H. Bonus, president & chief operating officer of Corporate Foods Limited, 416-622-9700/
 (MLF) CO: Maple Leaf Foods Inc.; Corporate Foods Limited ST: Ontario IN: FOD SU: TNM


AH -- NY032 -- 2395 04/24/92 11:21 EDT
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Publication:PR Newswire
Date:Apr 24, 1992
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