2007-03-29

Labatt gets go-ahead to take Lakeport

By Naomi Powell
The Hamilton Spectator
(Mar 29, 2007)
Labatt has cleared the last hurdle to its takeover of Lakeport Brewery.

The Competition Tribunal yesterday turned down a request from the Commissioner of Competition for another 30 days to consider the acquisition.

That gives Labatt the green light to forge ahead with its $201.4-million offer for the Hamilton brewer, famous for its buck-a-beer suds.

"We're obviously very pleased by the decision of the tribunal today," said Neil Sweeney, Labatt's vice-president of corporate affairs. "It reinforces what we've said, which is that we believe this is a significant deal with significant value for Lakeport unitholders and we look forward to getting on with it."

The offer of $28 per unit must be accepted by two-thirds of unitholders by 5 p.m. today.

Meanwhile, the fate of the Burlington Street plant, and its 200 jobs, remains unclear. "At this point no decisions have been made with respect to the brands or the brewery," Sweeney said.

"I'm pretty optimistic," said Craig McInnes, vice-president of Teamsters Local 938, representing 140 Lakeport workers. "They have a lot of capital projects going on. I can't see why anybody would want to close it."

Lakeport CEO Teresa Cascioli stands to make $43.5 million from the sale of her 21.6 per cent share of the trust.

"I'm pleased for unitholders and I'm pleased for Lakeport and Labatt," Cascioli said yesterday.

Some were concerned the beer giant was gunning for Lakeport in order to shut down the discount beer segment.

npowell@thespec.com

905-526-4620

Used with permission from The Hamilton Spectator, www.thespec.com Copyright The Hamilton Spectator. All rights reserved.