| NEWS RELEASE |
CONTACTS
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Media
Relations:
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Mike
Martin -
585-218-3669
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John
Lute -
416-929-5883
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Investor
Relations:
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Lisa
Schnorr
- 585-218-3677
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Bob
Czudak -
585-218-3668
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| § |
C$33
per
share represents a 48 percent premium above the closing price of
Vincor’s
common shares on the Toronto Stock Exchange (TSX) on Sept. 8, 2005,
the
day before Constellation first proposed a transaction to Vincor.
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Constellation
indicated to Vincor’s board that it would offer C$35 cash per share
subject to usual and customary terms, including confirmatory due
diligence
and agreement by the Vincor board that it would support the offer
and
provide cooperation throughout the completion of the acquisition.
Vincor’s
board has refused to engage in discussions about any aspect of
Constellation’s C$35 cash per share proposal. The proposal was made in
good faith, and was summarily rejected by Vincor’s board solely on the
basis that the price was insufficient. No discussions have taken
place
between the two companies since this offer was
made.
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No
alternative transaction - superior or otherwise - has emerged in
the three
months since the Vincor board was approached by Constellation.
As a result
of the Vincor board’s refusal to consider cooperation, the only offer
available to its shareholders is Constellation’s C$33 per share cash
offer.
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There
can be
no assurance that, in the absence of Constellation’s offer, Vincor shares
will not return to their pre-Sept. 8, 2005, trading levels. At
that time,
Vincor shares were trading in the C$22 range and trending
lower.
Vincor’s
shares had lost 38 percent of their value in nine months
and the median of analysts’ 12- to 18-month price targets for Vincor was
C$27 per share.
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| § |
The
decision
facing Vincor shareholders remains the choice between accepting
a
substantial cash premium from Constellation or accepting a very
uncertain
future for Vincor in a challenging global
industry.
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