Noranda limited in offers to purchase Falconbridge stock

While recently announcing its plans to acquire up to a further 10% (about 7.4 million shares) of the stock of Falconbridge Ltd. (TSE), Noranda Inc. (TSE) has chosen to make normal course purchases not exceeding 5% of the outstanding common shares during any 90-day period.

Noranda currently has a 19.9% interest in the nickel producer, the shares bought this past summer on the open market. It recently sought to buy another seven million shares of Falconbridge at $22.50 per share but the deal was turned down by the Ontario Securities Commission (OSC).

According to OSC rules, an offer to buy shares which would give the purchasing company an over-all interest equal to 20% or more in the company being pursued, is considered a takeover bid. In the event of a takeover bid, all shareholders must be given the opportunity to sell their shares at the same price, unless an exemption, such as the 5% restriction, is sought.

Noranda has filed its notice of intention to make normal course purchases of Falconbridge stock during the next six months with both the Toronto and Montreal stock exchanges. The notice will expire May 26, 1989.

Noranda, the major shareholder in Falconbridge, says it is not obligated to acquire any more common shares of the nickel producer.