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Blumont reviewing exchange offer from principal shareholder

Date: Thursday, September 21, 2006
Author: InvestmentExecutive.com

Firmís advisor suggests IAM offer financially inadequate

Thursday, September 21, 2006

By† IE Staff

BluMont Capital Inc. is reviewing an offer by its principal shareholder, Integrated Asset Management Corp., to acquire all outstanding common shares of the company it does not already own. The offer of 1/3 of one common share of IAM for each common share of Blumont, expires on October 27, 2006.

Crosbie & Company Inc., the independent financial advisor to Blumontís independent committee, has prepared a formal valuation of the BluMont common shares and the common shares of IAM under the IAM Offer.

As disclosed in the offer and takeover bid circular prepared by IAM in respect of the IAM Offer, Crosbie & Company has concluded that the consideration offered pursuant to the IAM offer is inadequate, from a financial point of view, to BluMont shareholders excluding IAM and its affiliates, Blumont says in a release.

The independent committee, together with its independent financial advisor and its independent legal counsel, Fasken Martineau DuMoulin LLP, will continue its deliberations concerning the IAM Offer and will consider, as part of those deliberations, the opinion from Crosbie & Company Inc., the release says. Once the Independent Committee has completed its deliberations, it will deliver its report to BluMont's board of directors following which the directors will, in accordance with applicable securities laws, either make a recommendation for or against the IAM Offer or make no recommendation.

The boardís decision on the IAM Offer will be presented to BluMont shareholders in a directorsí circular to be mailed to shareholders on or before October 6, 2006. The independent committee urges BluMont shareholders not to tender any shares to the IAM offer pending receipt of the directorsí circular, the Blumont release says.