George Weston Limited Asserts Claim as a result of Domtar Reorganization



    TORONTO, March 14 /CNW/ - George Weston Limited ("Weston") (TSX:wn)
announced today that as a result of the March 7, 2007 reorganization of Domtar
Inc. ("Domtar"), whereby Domtar was combined with the fine paper business of
Weyerhauser Inc., Weston has demanded a price adjustment payment from Domtar
of $110 million arising from the June 1998 sale by Weston of E.B. Eddy Limited
and E.B. Eddy Paper, Inc. to Domtar. The Share Purchase Agreement between
Weston and Domtar provided that if any person subsequently acquired more than
50% of the outstanding voting shares of Domtar, a price adjustment amount
would be payable to Weston. Pursuant to the Share Purchase Agreement, there is
an exception to the requirement to make the price adjustment payment where the
transaction satisfies certain conditions, including that the common shares of
Domtar are exchanged for "only fully voting common shares" of a Canadian
corporation. Under the reorganization, holders of common shares of Domtar
could elect to receive either common shares of Domtar Corporation, a US
corporation, or shares of a Canadian corporation that are exchangeable for
common shares of Domtar Corporation, neither of which are "fully voting common
shares" of a Canadian corporation.
    Domtar's position is that the purchase price adjustment does not apply
because of the application of the exception. Weston disagrees with Domtar's
position and intends to pursue its legal rights pursuant to the Share Purchase
Agreement.

    George Weston Limited is one of North America's largest food processing
and distribution groups operating in two segments: baking and dairy through
Weston Foods, and food and general merchandise distribution through Loblaw
Companies Limited.

    This News Release contains forward-looking statements that reflect
management's expectations relating to this matter. Although Weston believes
that these statements are based on information and analysis that is current,
reasonable and complete, these statements are necessarily subject to a number
of factors that could cause actual results to vary significantly from these
expectations. Such differences may be caused by factors that include, but are
not limited to, the inherent uncertainty regarding the outcome of litigation
or any dispute resolution initiatives. Readers are urged to consider these
factors carefully in evaluating these forward-looking statements and are
cautioned not to place undue reliance on them. The forward-looking statements
included in this News Release, are made only as of the date of this News
Release and Weston does not undertake to publicly update these forward-looking
statements to reflect new information, future events or otherwise. In light of
these risks, uncertainties and assumptions, the forward-looking events
contained in these forward-looking statements may or may not occur. The
Company cannot assure that projected results or anticipated events will occur.





For further information:

For further information: Geoffrey H. Wilson, Senior Vice President,
Financial Services and Investor Relations, (416) 922-2500


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