Louvem makes offer to A shareholders

The preferred shares are convertible into Louvem common shares on a 0.7 common share for one preferred shares basis until June 14, 1991, and 0.5 common share for each preferred share after that.

As of Sept 30, accumulated dividends on the preferred shares amounted to about $1.87 per share.

Louvem is planning to change, subject to regulatory and board approval, the conversion ratio of the preferred shares from 0.7 common share to 0.85 as long as the preferred shares are outstanding. If the arrangement is approved, Louvem says it would pay to preferred shareholders of record, at a yet-to-be determined date, 50% of the dividends in arrears on Sept 30, 1989, and the balance would be waived.

In addition, dividends on the preferred shares would only resume with the quarter starting on Oct 1, 1991. All other terms and conditions of the preferred shares would remain unchanged.

According to Louvem, 46% of the publicly owned preferred shares outstanding have agreed to vote in favor of the plan. But 75% must vote in favor at a Dec 20 meeting in Montreal if the arrangement is to be approved.

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