Coreco Adopts a New Shareholder Protection Rights Plan

„MONTREAL, QUEBEC–Coreco Inc. announced today that its shareholders have adopted a new shareholder protection rights plan to replace the current plan which would have expired on July 1, 2002. The new rights plan provides the board of directors and shareholders with sufficient time to evaluate a take-over bid and, if appropriate, to pursue alternatives with a view to maximizing shareholder value. It should ensure that all shareholders are treated fairly in any transaction involving a change in control and that all shareholders have an equal opportunity to participate in the benefits of a take-over bid. \r\n
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\r\nThe new rights plan does not prevent take-over bids. Bids that meet certain requirements intended to protect the interests of shareholders are considered to be \“permitted bids\“. A permitted bid must be made to all shareholders by way of a take-over bid circular prepared in compliance with applicable securities laws, remain open for a minimum of 60 days and satisfy certain other conditions. \r\n
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\r\nUnder the rights plan, Coreco has issued one right in respect of each common share to holders of record at 4:00 p.m. (Montreal time) on May 14, 2002. In the event a take-over bid is made that does not meet the permitted bid requirements, those rights will entitle shareholders, other than any shareholder or group of shareholders making the take-over bid, to purchase additional common shares at a substantial discount to the market value. \r\n
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\r\nTo the knowledge of Coreco, there is no actual or proposed take-over bid or change in control of the Corporation and no person or group holds 20% or more of the common shares.\r\n
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