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MOTOR COACH INDUSTRIES INTERNATIONAL ANNOUNCES COMMENCEMENT OF OFFER FOR REMAINING SHARES OF MOTOR COACH INDUSTRIES LIMITED

 PHOENIX, Nov. 11 /PRNewswire/ -- Motor Coach Industries International, Inc. (NYSE: MCO) said today that it has begun its previously announced offer for the outstanding shares of Motor Coach Industries Limited, Winnipeg, Canada (MCIL), its 69 percent-owned Canadian coach manufacturing subsidiary.
 The offer is for Canadian $15.70 in cash for the approximately 2.6 million common shares (31 percent of the total outstanding common shares) of MCIL that Motor Coach does not now own. The shares of MCIL are currently listed on the Toronto Stock Exchange. While the offer is in progress, Motor Coach will explore a way of giving MCIL shareholders the option of receiving Motor Coach shares for some or all of their MCIL shares.
 Full details of the cash offer are in a circular that is being mailed today to MCIL shareholders. The offer has several conditions, including the receipt of at least 90 percent of the MCIL shares not currently owned by Motor Coach or its affiliates. If successful, the offer will total approximately US$32 million (at current exchange rates) and is not expected to dilute Motor Coach's earnings per share. A special committee of independent directors of the MCIL board of directors has given a favorable recommendation on the offer, and the MCIL board unanimously recommends, subject to review of any alternative involving Motor Coach shares, that shareholders accept the offer.
 George W. Aucott, chairman and CEO of Motor Coach, noted that ownership of 100 percent of MCIL will increase operational flexibility and open up new opportunities for expansion of the company's business. "In early 1993, in connection with the restructuring of MCIL, agreements were put in place which have impeded the pursuit of international ventures in Mexico, China and elsewhere. Completion of the offer will permit us to eliminate these impediments. Based upon our analysis, we consider the offer to MCIL public shareholders to be fair. Since MCIL is a company with limited resources and an illiquid trading base, we believe that this is a win-win situation."
 Motor Coach Industries International, Inc. is the leader in the United States and Canada in the design, manufacture, assembly and marketing of intercity coaches and their replacement parts. The company became publicly held in an initial public offering in August 1993.
 -0- 11/11/93
 /CONTACT: Craig R. Lentzsch, executive VP-finance of Motor Coach Industries International, 602-207-5318/
 (MCO)


CO: Motor Coach Industries International, Inc.; Motor Coach Industries
 Limited ST: Arizona, Manitoba IN: AUT SU:


CK-WB -- NY078 -- 3450 11/11/93 18:25 EST
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Publication:PR Newswire
Date:Nov 11, 1993
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