TORONTO, Feb. 5 /CNW/ - Pala Investments Holdings Limited ("Pala"),
together with an affiliate of AMCI and another leading coal industry investor
(collectively, the "Investment Group"), announced today that the Investment
Group has terminated negotiations with Coalcorp Mining Inc. (TSX:CCJ)
("Coalcorp") concerning a possible transaction to acquire all of Coalcorp's
issued and outstanding shares. These negotiations were initiated following the
delivery of an acquisition proposal (the "Proposal") by the Investment Group
to Coalcorp's board on January 29, 2008.
The Proposal contemplated an offer to all of Coalcorp's shareholders at a
significant premium to the recent trading value of the Coalcorp shares and
requested that the Investment Group be permitted to perform due diligence to
confirm its offer while simultaneously negotiating the terms of a definitive
transaction agreement. The Investment Group's decision to withdraw its offer
is a result of the board's decision to impose unreasonable conditions,
including an insufficient due diligence period, on the Investment Group, and
inadequacies in the process outlined by the board. While the Investment Group
remains interested in pursuing the proposed transaction, it is not willing to
proceed with negotiations under the current conditions imposed by the board.
As Coalcorp's largest shareholder, Pala now looks forward to the company
presenting alternatives designed to address the company's financial position
and to create shareholder value.
For further information:
For further information: Michael Daniher, (416) 961-2774 x 1