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 MONTREAL, Dec. 8 /PRNewswire/ -- United Dominion Industries Limited (NYSE,TSE: UDI) today announced that it has agreed in principle to sell a majority interest in its Dominion Bridge operation to a new company whose common shares will be owned primarily by a group of investors associated with the Manson Group. The Manson Group, whose principal shareholder is Keith F. Eaman of Montreal, is a manufacturer of commercial and industrial insulation products and, through affiliates, has substantial interests in Canadian construction markets.
 The proposed transaction involves the sale of Dominion Bridge assets to a new company, which will retain the name. United Dominion will own a 15 percent common share interest and receive preferred shares with a face amount equivalent to Dominion Bridge's book value. Additional capital will be infused into Dominion Bridge from third-party investors and United Dominion.
 In conjunction with the proposed transaction, United Dominion may take a charge to 1993 earnings of up to US$5 million for the possible future restructuring of Dominion Bridge, which will be treated as a discontinued operation by United Dominion for accounting purposes.
 United Dominion and the new shareholders of Dominion Bridge also announced the appointment of Mr. Eaman as chairman of the new enterprise. William J. Meder, chairman of Volcano Energy Systems, Inc., an affiliate of the Manson Group, will become Dominion Bridge's new president, succeeding Donald G. Mathewson.
 "We are quite pleased with the prospects for the new Dominion Bridge based on more than a century of its enginnering and construction experience and know-how combined with the inherent strengths of the Manson Group," William R. Holland, chairman and chief executive officer of United Dominion, said at a press conference here today.
 "With the positive aspects of the Manson association, strengthened management and an adequate capital structure, Dominion Bridge will continue its 112-year history of serving Canadian and other construction markets," he said.
 Dominion Bridge provides a wide range of custom steel fabrication, erection and engineering/construction services for commercial and industrial markets. The company has approximately 1,200 employees at fabrication and construction operations in Lachine, Quebec; Winnipeg, Manitoba; Amherst, Nova Scotia; Oakville, Ontario; Calgary, Alberta; Regina, Saskatchewan and Richmond, B.C.
 Mr. Holland said that operating losses suffered by Dominion Bridge in 1993 as the result of severely depressed markets "should be arrested in 1994 because of the positive impact from the new structure and from an improving economy."
 "We see exceptional opportunities for the new Dominion Bridge, given its reputation as one of Canada's preeminent construction companies and our management expertise in construction-related businesses," Mr. Eaman said.
 The transaction is subject to several conditions, including execution of a definitive agreement and regulatory approval, but closing is expected to occur in January.
 United Dominion is a manufacturing, engineering and construction company serving construction and industrial equipment markets worldwide. The company operates more than 60 major facilities and has approximately 13,400 employees, including those of Dominion Bridge.
 -0- 12/8/93
 /CONTACT: Robert L. Shaffer, of United Dominion Industries, 704-347-6875/

CO: United Dominion Industries; Dominion Bridge ST: North Carolina IN: CST SU: RLE

CM -- CH002 -- 1626 12/08/93 09:03 EST
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Publication:PR Newswire
Date:Dec 8, 1993

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