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Gold/Mining/Energy : IMARK Corporation (IAK was Durkin Hayes DHP)
IAK 54.38+0.7%Sep 25 4:00 PM EDT

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To: Pierre J. LeBel who wrote (8)3/2/1998 1:51:00 PM
From: DANIEL  Read Replies (3) of 57
PIERRE, SORRY I HAVEN'T BEEN IN TOUCH OVER THE PAST few days. The shares were purchased from algonquin at 67 cents per share. Alqonquin claims that the transaction was unsolicited. This is an encouraging piece of news for DHP shareholders as it has brought a new party to the table who is most likely interested in taking over, or at the very least exerting control, over DHP. The best way for the buyer to get a foothold in the company was obviously to buy share from a contol person. Algonquin has made two acquisitions since they took their position in DHP and their cost of DHP shares is probably about 55 to 60 cents per share (with some of those purchases being paid for with shares). There is no doubt that DHP has not performed the way Algonquin expected and this was an opportunity to take some of their money off the table at a profit(they probably recovered at least all the money they paid in cash for the DHP shares) and therefore have some cash to invest in their new business.

The bottom line is that there is a strong likelyhood that the purchaser of the shares will make a TOB in the next few months. Based on canadian securities laws, they would have to make an offer of at least 67 cents a share in cash. Before that may happen, though, DHP 1997 results will definately be out. Lets hope the results don't scare this new investor away.


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